That scenario would force a tough choice, Powell said, between lowering borrowing costs to support the job market or keeping them elevated to contain price pressures. And in the meantime, he suggested uncertainty over the scope and scale of the tariffs — and the outcome of looming trade talks — will keep policymakers on hold for now.
Federal Reserve Chair Jerome Powell made clear he won’t be rushed into lowering borrowing costs until there’s more certainty on the direction of trade policy, which will have to come from the White House.
Powell and his colleagues held interest rates steady on Wednesday and, in their first meeting since President Donald Trump’s sweeping tariff announcements last month, said the risks of seeing higher inflation and unemployment had risen.
