Bessent: Fed's Rate Pause Reflects Economic Navigation Challenge

The Federal Reserve maintained current interest rates as it navigates competing economic pressures, with officials particularly watchful of how President Trump's tariff policies might simultaneously push inflation higher while constraining growth. Fed Chair Jerome Powell emphasized the unusual complexity of the current environment, acknowledging that "it's not at all clear" what monetary policy adjustments might be needed next, suggesting a deliberate approach as the central bank weighs evolving economic signals.