On May 8th, 2023, Beijing time, the Federal Open Market Committee (FOMC) of the Federal Reserve announced after its meeting that it would maintain the federal funds rate target range at 4.25% - 4.5%, in line with market expectations. This marks the third consecutive pause in action by the Federal Reserve during its monetary policy meetings, and this rate decision received unanimous agreement from FOMC members. Regarding the balance sheet, the committee will maintain the current pace of balance sheet reduction, with a monthly cap of $5 billion on the redemption of U.S. Treasury securities and a monthly cap of $35 billion on agency debt and MBS. The Federal Reserve's statement noted that the uncertainty surrounding the economic outlook has "further" increased, emphasizing that both inflation and unemployment risks are rising, adding the new statement that "the risks of rising unemployment and inflation have increased," while reiterating that recent indicators show that economic activity continues to expand robustly, pointing out that fluctuations in net exports have affected the data.

Federal Reserve Chairman Powell stated after the meeting that high tariffs could lead to rising inflation and unemployment rates, and it is too early to determine which risk—inflation or unemployment—is more severe; the current monetary policy is moderately restrictive, with a positive outlook for potential inflation, and taking a wait-and-see approach is a clear decision; it is not possible to act preemptively because it is not known how to respond until more data is seen; the impact of tariff shocks has not yet arrived, and the policy's effect on inflation could be temporary or more lasting; at least for the next year, the Federal Reserve's inflation and employment targets are unlikely to make progress; negotiations could substantially change the trade situation or may not.