"The Federal Reserve (FED) Echo Chamber": Concerned about runaway inflation, the Federal Reserve (FED) may postpone interest rate cuts.

On May 6, on the eve of the Federal Reserve’s interest rate decision on Thursday, Nick Timiraos, a well-known financial journalist known as the “New Fed News Agency”, published a new report, analyzing the dilemma faced by the Fed in dealing with the Trump administration’s “sloppy” tariff policy, suggesting that the Fed may hold off on cutting interest rates. The article suggests that the Fed will keep a close eye on changes in the labor market, using employment data as an important reference for its decision-making: “The Fed will not cut interest rates early in anticipation of an economic slowdown, they need to see actual data, especially in the labor market.” Tariffs could force the Fed to “go the latter path.” Because tariffs are likely to push prices higher in the short term, uncertainty can also slow economic activity and create signs of stagflation, which could make the Fed pause on cutting interest rates. If inflation expectations get out of control, it will become more difficult to get inflation under control. The article further notes that the “constraints” mentioned by former Fed Governor Brainard have worsened compared to five years ago, as the economy has recently experienced a period of very high inflation. Even though the Fed may consider cutting interest rates internally, the Fed still needs to remain vigilant about inflation in public to stabilize market expectations.