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On Wednesday Federal Reserve chair Jay Powell announced that US interest rates would remain unchanged. But the monetary policy committee is clearly worried that tariffs might slow growth and increase inflation. Today on the show, Rob Armstrong, Katie Martin and Aiden Reiter try to figure out why markets weren't worried by what they heard from the Fed. Also they go long Twitter (X… whatever) and short Tesla.

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You can email Robert Armstrong and Katie Martin at unhedged@ft.com.

Read a transcript of this episode on FT.com

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3e:T426,Jeanette Garretty, chief economist at Robertson Stephens Wealth Management, says that Federal Reserve chairman Jerome Powell's message this week was largely positive -- suggesting we're "in a mode to get a soft landing" -- but the market seized on confusing parts where he suggested that the central bank is not afraid of going through some pain. Garretty notes that there are already plenty of "pain points" already visible in the economy, but that it hasn't created real trouble yet. The question, she noted, is whether that pain will be felt down the line. Also on the show, John Cole Scott of Closed-End Fund Advisors talks about how muni-bond closed-end funds have seen discounts widening well past historic norms -- but notes that investors may want to be cautious before diving in -- Chuck answers a listener's question on unit investment trusts, and Matt Fox, president of Ithaca Wealth Management, says that technical indicators suggest the market will challenge support levels -- taking a small setback -- before they can start to make the next leg up.

The Fed Keeps It Steady