The central bank chief defended the decision to hold rates steady in the face of policy uncertainty: “We didn’t overreact. In fact we didn’t react at all, we’re simply taking some time.”

After the widespread uncertainty caused by the tariff policy, Powell said the Fed decided the "prudent thing to do is to wait."

Federal Reserve Chair Jerome Powell said Tuesday that the U.S. central bank would have easier monetary policy by now if not for President Donald Trump's tariff plan.When asked during a panel if the Fed would have lowered rates again by now had Trump not announced his controversial plan for levies on many foreign trading partners earlier this year,