The Federal Reserve (the Fed), which is like the central bank of the U.S., decided to keep interest rates steady at around 4.25% to 4.5% at their meeting in May. They're in a tricky spot because they see risks of both higher unemployment and higher inflation.
The Fed is being careful because there's uncertainty with President Trump's tariffs (taxes on imported goods) and the economy is showing mixed signals. Some parts are strong, but others are weak.
The head of the Fed, Jerome Powell, said they won't cut interest rates early because they need more information to see how things will go.
Powell also mentioned that the trade talks that the U.S. is having with other countries could significantly change how the economy looks. He noted that the tariffs Trump put in place were "substantially larger than anticipated."
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are meeting with Chinese officials to discuss these trade issues.