MetaEra News, May 29 (UTC+8), "Fed Mouthpiece" Nick Timiraos pointed out that Federal Reserve staff presented a clear stagflation forecast at the May meeting, which is significant as it may become the foundational framework for the (Summary of Economic Projections) (SEP) submitted by officials next month. As usual, the Fed's description is quite calm, but Fed staff clearly indicated a substantial slowdown in the labor market, which will lead to a rise in the unemployment rate this year and maintain a high unemployment rate during the forecast period (until 2027). The Fed staff also predict that inflation will rise "significantly" this year, with a "smaller" price increase in 2026. Notably, the staff stated that if they are wrong about the 2026 and 2027 projections (expecting inflation to reach 2%), it is more likely to be an underestimation rather than an overestimation of inflation risks. (Source: Jinshi)