The big bank in the US did not change the money rate.

The bank did not change the money rate. It is 4.3%. Some people think the rate will be lower later this year. But new taxes on things from other countries make the future unclear.

Jerome Powell talked about new taxes. He said people feel less happy about buying things and starting businesses because of the taxes. But he said the taxes did not hurt the economy a lot yet. He also said he does not know what the main bank should do about the taxes now.

Powell said if taxes stay high, prices might go up. The economy might grow slower. More people might not have jobs. This could be for a short time or a long time.

Prices going up and people losing jobs together is not common.

Sometimes prices go up a lot and many people do not have jobs. This is a big problem. It happened before in the 1970s.

Some people think Trump's taxes can make things cost more and some people may lose their jobs.

The Fed helps the country's money. It wants prices to be okay and people to have jobs. If prices go up a lot, the Fed makes borrowing money cost more. If people lose jobs, the Fed makes borrowing money cost less.

People thought the bank would make borrowing money cheaper because prices were not going up fast.

Many people thought the economy would be okay. Prices would go down, and jobs would stay good.

But on Wednesday, Powell said it is not likely.

If there are new taxes, we will not reach our goals for about a year.

Powell said the Fed will look at prices and jobs. They will see which is worse.

We need to see what happens before we decide.

A man named Krishna thinks the Fed will not lower interest rates soon. He thinks they will not lower them in June. Maybe they will lower them in September.

Trump put extra taxes on things from other countries.

The central bank is careful. This can cause problems between the central bank and the Trump government. Trump wants the central bank to make interest rates lower. Trump said this on TV. Trump said he would not fire the head of the central bank. But he might fire him if the economy gets worse.

Powell said Trump's words do not change their work.

If the Fed cuts rates, it can make it cheaper to borrow money for houses and cars.

Higher prices are a problem for the Fed.

Today, the U.S. economy is mostly good. Prices are not going up so fast now. People are still buying things. Companies are hiring workers, and not many people are looking for jobs.

But prices may go up more soon.