Fed holds interest rates steady

WASHINGTON (NEXSTAR) - Federal Reserve Chairman Jerome Powell announced no changes to interest rates.

The announcement comes as no surprise for top economists, who say recent tariffs have created uncertainty throughout the U.S. economy.

No word from President Donald Trump yet but he's publicly bashed the Federal Reserve for refusing to lower interest rates, something he argues would spur the U.S. economy.

"The Federal Open Market Committee decided to leave our policy interest rate unchanged," said Powell.

Powell says the central bank is holding off on cutting interest rates to see how the U.S. economy adjusts to looming tariffs.

"The risks of higher unemployment and higher inflation appear to have risen," said Powell.

A 145% tariff on all Chinese imports has rattled Wall Street and Main Street but the Trump administration insists their trade strategy is good for U.S. business.

"Tariffs create incentive for reshoring jobs and fair trade," said Treasury Secretary Scott Bessent.

Bankrate financial analyst Greg McBride says last month's job report plus strong consumer spending and eased inflation shows the economy is on track for now.

"That could change in the months ahead," said McBride.

McBride says if tariffs cause businesses to lay off workers or spike consumer prices that could spur the fed to slash rates.