US Federal Bank President Jerome Powell said on Wednesday that despite the increased uncertainty and risks arising from Trump’s commercial and economic policies, the United States economy remains “stable” at present.

The Fed may wait to see how the Trump government’s duties and other economic policies will evolve before making any interest rates, the Fed president said Wednesday.

“For the time being, we are in a good position to expect more clarity” on the impact of policy changes in areas such as immigration, taxation, regulation and duties, Powell added.

Intense volatility in financial markets following Donald Trump’s announcement on the imposition of sweeping duties on April 2, which were suspended for the most part just a week later, has led to speculation about whether the Fed will soon reduce its basic interest.

However, according to economists, the federal bank is unlikely to intervene, unless there is a collapse in the government bond market or other malfunctions in the financial system.

In his statements, Jerome Powell reiterated that Trump’s duties are “significantly larger than expected”.

“The same will probably apply to their financial impacts, which will include increased inflation and slower development,” he said.

Powell also reiterated that the Fed may soon be confronted with two conflicting goals assigned to her by Congress: the maximum employment and prices stability.

He described this situation as a “difficult scenario”, as the Fed should essentially choose whether to keep interest rates high to combat inflation, or to reduce them to stimulate growth and employment.

Powell noted that inflation is likely to be temporary, but “could also prove more persistent”, expressing concern that has already been reflected in the minutes of last month’s meeting by the majority of the 19 members of the Fed interest rate committee.

However, disagreements have begun to appear among the members of the Commission. On Monday, Fed Commander Christopher Waller said he expects the effect of even a significant increase in duties would be temporary, even if they remain in force for several years. At the same time, he estimated that such big duties would burden the economy and could even threaten with recession.

If the economy is slowly slowing down, even if inflation remains at a high level, Christopher Waller said he would support the reduction of interest rates “earlier and to a greater extent than I previously thought they needed to be reduced”.

However, other Fed officials, such as Neil Kaskari, president of the Minneapolis regional Fed, have stated that they place greater emphasis on addressing inflation caused by higher duties, indicating that they are less likely to support immediate cuts.

At present, the latest financial figures show that the economy remains in stable condition. Employment is moving at positive levels and inflation slowed in March. However, consumer and business confidence indicators have collapsed, causing concerns for economists that consumption and business investment may be weakened.