The main bank in the US did not change the interest rate. President Trump wanted the rate to be lower, but the bank did not listen. The bank said it is now more likely that more people will lose their jobs and prices will go up. This is a hard situation for the bank.

The central bank did not change the interest rate. Many people think the bank will lower rates this year. But new taxes on goods from other countries have made the future of the economy and the bank's plans unclear.

At a meeting with reporters, Jerome Powell said that the taxes have made people and companies feel less positive, but they haven't really hurt the economy yet. Powell said that right now, it's too hard to know what the Fed should do about the taxes because things are not clear.

Powell said that if the planned higher taxes on imports continue, prices might go up, the economy could grow more slowly, and more people might lose their jobs. He added that these effects could be short or last longer.

Usually, the Fed doesn't have to worry about prices going up and people losing jobs at the same time. Prices often go up when people buy a lot, and businesses can't make enough things, like after COVID. But when the economy is not strong, people buy less, and more people might lose their jobs. This usually helps stop prices from going up.

When prices rise quickly and many people are out of work, it's called 'stagflation'. This worries central bankers because it's hard to solve both problems together. It happened for a long time in the 1970s when oil prices went up a lot and there was a recession.

But most economists think Trump's taxes on imports could cause economic problems.

The Fed has two main goals: to keep prices steady and to help people find jobs. If prices go up quickly, the Fed usually makes it more expensive to borrow money. This makes people and businesses spend less, which helps stop prices from rising so fast. If many people lose their jobs, the Fed might make it cheaper to borrow money. This helps people and businesses spend more and helps the economy grow.

At the start of the year, experts thought the Fed would lower interest rates a few times because prices were not going up so fast after the pandemic. Some experts also think the Fed should lower rates because they think the economy will grow more slowly and more people will lose their jobs because of taxes on goods from other countries. But Powell said that because the economy is good now, the Fed can wait and do nothing.

A few months ago, many experts thought the economy would slowly get better without problems. They believed that prices would stop rising so quickly and reach the 2% goal. They also thought that people would keep their jobs and the economy would grow well.

But on Wednesday, Powell said that would probably not happen.

If the taxes on goods stay high, we will not make progress towards our goals, Powell said.

Powell also said the Fed's next step depends on whether prices rise a lot or if many people lose their jobs.

He said they don't know what will happen yet. They might make interest rates lower, or they might keep them the same. They need to wait and see before they decide.

An expert named Krishna Guha said the people at the Fed think the economy is strong. This means they probably won't lower interest rates soon. Many people think they might wait until September to do it.

In April, Trump said he would put high taxes on goods from about 60 countries the U.S. trades with. But he stopped most of these taxes for 90 days, except for those on goods from China. The government has put a 145% tax on goods from China. The U.S. and China will have their first important meeting since Trump started this trade problem this weekend in Switzerland.

The central bank is being careful. This might cause more problems between the central bank and President Trump. On Sunday, President Trump said on TV that the central bank should make interest rates lower. President Trump is not trying to fire the head of the central bank now. But he might try to fire him if the economy is not good in the next few months.

When asked if President Trump's ideas about lower interest rates change the Federal Reserve's work, Powell said, "It does not change how we do our job. We only think about facts about the economy, what we think will happen, and the possible problems. That is all."

If the Fed lowers interest rates, it could make loans cheaper, like for houses, cars, or credit cards. But we don't know for sure if this will happen.

The Fed has a problem: how will taxes on imported goods change prices? Most experts think these taxes will make things more expensive, but they don't know by how much or for how long. Usually, these taxes make prices higher just once, not all the time.

The U.S. economy is doing well now, and prices are not going up as fast as before. People are buying a lot, maybe because they want to buy cars before new taxes. Companies are still hiring people, and not many people are without a job.

But, there are signs that prices will go up more in the next few months.