Fed Chair Jerome Powell said the economy is solid — and that it's also too early to tell how tariffs will affect it.

The Federal Reserve left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed’s decision Wednesday leaves its key short-term rate at about 4.

In Powell's view, the Fed is further from its goal on inflation than that of the job market, which means the Fed must keep rates high. Change that equation, though, and the Fed could quickly begin to cut interest rates.