The tariffs imposed by US President Donald Trump have led to hard choices for policymakers at the Federal Reserve. The Fed decided on Wednesday to keep interest rates unchanged for the fourth straight time.

Policymakers released a statement saying recent indicators suggest that economic activity has continued to expand at a solid pace, and unemployment is low. However, they said inflation remains somewhat elevated, and they are concerned about how trade policy will impact prices.

At a news conference, Federal Reserve Chair Jerome Powell said: "It takes some time for tariffs to work their way through the chain of distribution to the end consumer. A good example of that would be goods being sold at retailers today may have been imported several months ago before tariffs were imposed. So we're beginning to see some effects, and we do expect to see more of them over coming months."

Policymakers are expected to cut interest rates twice by the end of the year. Powell said they need to feel confidence that inflation is coming down. He added that, "without tariffs, confidence would be building."

Trump has renewed his criticism of Powell, calling him "stupid," "political" and saying he is "too late" at lowering rates.

However, Powell is maintaining a cautious stance. He stressed to Trump last month that policymakers will base their decisions on objective and non-political analysis.