The Federal Reserve held interest rates constant amid debates about whether financial conditions are tight enough to contain inflation or if an economy that outperforms expectations needs more constraint.

Fed Chair Jerome Powell said the situation remained a dilemma, with officials willing to raise rates again if inflation stalls, wary of market-based interest rates, and trying not to disrupt steady job and wage growth.

The best course of action was to maintain the Fed’s benchmark overnight interest rate in the 5.25%-5.50% range and see how job and price data evolve between now and December.

Powell said it was unclear if financial conditions were restrictive enough to manage inflation that was still far above the Fed’s 2% target.

The Fed favors raising rates over holding policy, but a recent market-driven rise in Treasury bond yields, home mortgage rates, and other financing costs could affect the economy if they persist.