Caution and clarity are the two takeaways from Fed’s notes—but Powell may get ‘stuck’ in limbo

• The Federal Reserve remains in a cautious holding pattern as heightened economic uncertainty—driven in part by volatile trade policies—has led the FOMC to unanimously maintain interest rates at 4.25% to 4.5%. Despite inflation nearing the 2% target and steady unemployment, the Fed continues its wait-and-see approach given growing risks of both recession and inflation, particularly from potential tariff impacts.

Jerome Powell’s job would be considerably easier if he were...