Federal Reserve Chair Jerome Powell made clear this week that he’s not ready to give in to demands by President Donald Trump to immediately cut U.S. interest rates. So what would convince him?

The Fed remains in a holding pattern, keeping rates unchanged as inflation risks from tariffs and economic uncertainty persist. Chair Powell emphasized patience, stating rate cuts will only occur if inflation falls unexpectedly or the labor market weakens materially.

The Fed chair told lawmakers that the central bank could afford to be patient amid uncertainty about how President Trump’s policies would affect the economy, even as divisions between officials emerged.