T
he Federal Reserve maintained its interest rate stance at a recent meeting, choosing not to make any adjustments in the face of economic uncertainty. Fed Chair Jerome Powell emphasized that the central bank is taking a patient approach, saying "we don't feel like we need to be in a hurry." The decision was consistent with analyst expectations and reflects the Fed's cautious attitude.

    Powell acknowledged that the economic outlook has become less certain due to changing tariff policies, but characterized overall economic activity and the job market as solid. However, he noted that the risks of higher unemployment and inflation have increased. Powell also highlighted the uncertainty surrounding President Trump's tariff policies, stating that they could lead to a rise in inflation, slower economic growth, and higher unemployment.

    The effects of tariffs on the economy are expected to become clearer in May, according to Melissa Cohn, regional VP of William Raveis Mortgage. Until then, the Fed will be cautious about cutting rates, as Powell emphasized that it's too early to predict their implications for the economy or inflation.

    Regarding the possibility of rate cuts this year, Powell was non-committal, saying there are cases where it would be appropriate and others where it wouldn't. He stated that the Fed will consider only economic data and not external pressures when making decisions.

    Powell also addressed his relationship with Trump, who has expressed dissatisfaction with the Fed's reluctance to cut rates. The Fed chair emphasized that the committee's work is unaffected by presidential demands, stating that they will continue to use their tools to foster maximum employment and price stability for the benefit of the American people.