Fed Chair Powell says central bank ‘well positioned to wait’ before moving rates again

The Federal Reserve kept a steady hand on interest rates, maintaining them at their target range of 4.25% to 4.5%.

The central bank is calling for two rate cuts this year, but policymakers see higher inflation. They have also cut their outlook for gross domestic product.

At his press conference, Federal Reserve Chair Jerome Powell said that policymakers are “well positioned to wait” before moving further on rates.

The U.S. economy has not yet seen the full impact of tariffs on prices for consumers, Fed Chair Powell said.

“It takes some time for tariffs to work their way through the chain of distribution to the end consumer. A good example of that would be goods being sold at retailers today may have been imported several months ago before tariffs were imposed. So we’re beginning to see some effects, and we do expect to see more of them over the coming months,” he said.

With a bevy of economic variables still unsettled, Fed Chair Jerome Powell said the central bank is content to sit tight until it learns more.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies,” Powell said at his post-meeting news conference.

Powell noted that President Donald Trump’s tariffs have the potential both to cause one-time price increases that the Fed likely would look through, or a longer-lasting hit to inflation.