In yet another dazzling display of monetary ambiguity, Federal Reserve Chair Jerome Powell has assured the world that the central bank is in no hurry to cut interest rates—despite having spent the last year frantically lowering them. Apparently, economic strength is now the official excuse for policy inertia, with Powell and his team choosing to “wait and see” before making further adjustments. In simpler terms, they’re winging it.

The Fed’s latest decision to hold rates steady at 4.25%–4.5% comes as no surprise, but the justification is where the real art lies. Powell now claims that rates are not as restrictive as they once were, a curious admission given the Fed’s previous insistence that higher borrowing costs were crucial to cooling inflation. The new narrative? The economy is strong, unemployment is low, and inflation is still “somewhat elevated”—so naturally, the best move is to do absolutely nothing while keeping an eye on Trump’s tariff tantrums.

This strategic dithering is all very convenient. If inflation miraculously falls, Powell can take credit. If it doesn’t, well, the Fed was merely being “data dependent.” And if Trump’s economic policies send shockwaves through the markets? Well, that’s someone else’s problem.

Speaking of Trump, the former (and once again current) White House occupant wasted no time in taking a swipe at Powell, reminding everyone that he knows best about interest rates. Powell, for his part, kept his composure and refused to engage. He may have realised by now that debating Trump on economic policy is like arguing with a tornado.

Investors are left wondering whether the Fed’s definition of “not rushing” means no cuts in 2025 or just a painfully drawn-out process of small, meaningless reductions. After all, the central bank has already walked back its previous optimism, now predicting just two rate cuts for the year—far fewer than the markets had hoped.

And then there’s the inflation wild card. While recent data suggests prices are stabilising, Powell remains keen on seeing a “series of numbers” before committing to a move. It’s the monetary policy equivalent of waiting for a miracle before calling the doctor. In the meantime, Trump’s tariff threats loom large, promising to throw another unpredictable variable into the mix.

In short, the Fed has perfected the art of saying a lot without actually saying anything. Inflation? Still watching. Rate cuts? Not yet, maybe later. Economic risks? Let’s wait and see. At this point, Powell’s greatest talent may not be managing monetary policy but delivering just enough vagueness to keep everyone guessing. And that, in itself, is a genius.