The US central bank did not change interest rates.

The Fed did not change the money rate. Some people think the Fed will make the rate lower this year. But new taxes from Trump make the U.S. economy and the Fed's plans unclear.

Jerome Powell spoke after the new policy. He said the tariffs made people and businesses feel less happy. But they did not hurt the economy much yet. Powell also said it is hard to know now what the Fed should do about the tariffs.

Powell said if taxes stay high, prices might go up. The economy might grow slower, and more people might lose jobs. He said this could be for a short time or a long time.

It is strange. Prices are going up, and people are losing jobs. This does not usually happen together.

When many people don't have jobs and things cost a lot, it is called 'stagflation'. This happened many years ago.

Many people who study money say Trump's taxes on imports can be bad. These taxes can make things cost more. This can also make some people lose their jobs.

The Fed wants prices to be low and many people to have jobs. If prices go up, the Fed makes it more expensive to borrow money. If people lose jobs, the Fed makes it cheaper to borrow money.

People thought the bank would make things cheaper this year. But the boss said no, the economy is okay now.

Before, many people thought prices would not go up fast, people would have jobs, and the economy would be good.

But on Wednesday, Powell said it might not happen.

If these taxes stay high, we cannot reach our goals, Powell said.

Powell said the Fed will look at prices and jobs to decide what to do next.

"It could be different," he said.

An expert said the US central bank might not lower interest rates soon.

Trump put taxes on things from other countries.

This could make problems between the bank and the government.

Someone asked if the president's words change the Fed's work. Powell said, "No. We only look at facts about money and future problems."

If the Fed makes money cheaper, it can cost less to borrow for houses, cars, and cards. But maybe not.

A problem for the Fed is how import taxes make prices higher.

The U.S. economy is doing okay. Prices are not rising as fast now. People are buying things. Businesses are hiring workers, so many people have jobs.

But prices might get worse.