The US central bank did not change the cost of borrowing money this week.

The bank did not change the money rate. Some people think the bank will make the rate lower later this year. But new rules from Trump make it hard to know what will happen.

The boss said the tariffs made people and companies feel less good. He said they did not hurt the economy much yet. He said it is hard to know what to do now because things are not clear.

Powell said if taxes on things from other countries stay high, prices could go up. The economy might grow slower, and more people might not have jobs. He said this might not last long, or it could last longer.

It is strange for the Fed. Prices are high, and jobs are few. Usually, high prices mean people buy a lot. Usually, few jobs mean people buy little.

When prices are high and many people have no job, it is called 'stagflation'. It is not good for the country.

But many people who study money say Trump's taxes on things from other countries could be bad. These taxes might make things cost more, and they might also make people lose their jobs.

The Fed wants prices to stay the same and jobs for everyone. If prices go up, the Fed makes it more expensive to borrow money. This makes people spend less and prices go down. If people lose jobs, the Fed makes it cheaper to borrow money. This helps people spend more and helps businesses grow.

But Powell said the economy is good now, so the Fed can wait.

Months ago, many people thought the economy would get better slowly. Prices would stop rising fast. Many people would still have jobs. And the economy would grow well.

But on Wednesday, Powell said it might not happen.

If the taxes start, we won't reach our goals this year.

Powell said the Fed will look at prices and jobs.

"We will see what happens, then we will decide," he said.

An expert said the Fed might wait to lower interest rates because the economy is good.

Trump put taxes on things from China.

The bank is careful. This can make problems between the bank and the country's leader. The leader wants the bank to make rates lower. The leader is not trying to fire the bank's head now. But maybe he will if the economy is not good.

Powell said Trump's ideas do not change the Fed's work.

If the Fed lowers rates, it can be cheaper to borrow money for a house, car, or credit card.

A big problem for the Fed is how import taxes will change prices.

The economy in the U.S. is okay now. Prices are not going up so fast. People are still buying things. Businesses are still hiring people. Not many people are without jobs.

But prices may go up more soon.