Fed chair holds rates steady

WASHINGTON (NEXSTAR) - The country just got new data about the health of the U.S. economy.

The Federal Reserve chairman announced no changes to interest rates, a result of what economists are dubbing stagflation, meaning the economy is stagnating but inflation remains high.

Recent polling shows more Americans are feeling the strain.

After a rollercoaster few weeks on Wall Street, a result of new tariffs by the Trump administration, the Federal Reserve is holding interest rates steady.

"As the economy evolves, we'll adjust our policy stance," said Federal Reserve Chairman Jerome Powell.

Federal Reserve Chairman Jerome Powell says uncertainty around the future of the economy has increased.

"Uncertainty today is unusually elevated," said Powell.

A recent university survey found anxiety among American consumers is prompting many to dial back spending.

"Consumers and businesses are mentioning tariffs as a driving factor," said Powell.

That anxiety has yet to reach the White House.

"There's been very encouraging data," said White House Press Secretary Karoline Leavitt.

The Trump administration remains optimistic. The latest jobs report shows the U.S. economy remains solid.

In February U.S. employers added 141,000 jobs to the economy.

"The manufacturing sector came roaring back in February," said Leavitt.

Bankrate financial analyst Greg McBride says they're not wrong.

"The economy has been very strong," said McBride.

He says the Trump administration's on again-off again trade wars with Mexico, Canada and most recently the EU, is not making the feds already difficult job any easier.

"When businesses don't have clarity it's hard for them to play on. They don't take big risks and go out and hire a bunch of people," said McBride.

Bankrate says interest rates are going to remain higher until inflation is under control so people should focus on paying down their credit cards and other forms of debt.