The Federal Reserve may postpone interest rate cuts
On May 6, just before the Federal Reserve announces its interest rate decision this Thursday, an analysis of the dilemma faced by the Federal Reserve in dealing with the Trump administration's 'hasty' tariff policy suggests that the Federal Reserve may postpone interest rate cuts.
The Federal Reserve will closely monitor changes in the labor market and consider employment data as an important reference for its decision-making: 'The Federal Reserve will not cut rates prematurely due to expected economic slowdown; they need to see actual data, especially in the labor market.'
Tariffs may force the Federal Reserve to 'take a different path.' Because tariffs could raise prices in the short term, their uncertainty may slow economic activity, leading to signs of stagflation, which could cause the Federal Reserve to postpone interest rate cuts. Even if the Federal Reserve internally considers rate cuts, it still needs to maintain vigilance against inflation in public to stabilize market expectations.