In May 2023, the Federal Reserve's FOMC meeting decided to maintain the federal funds rate target range at 4.25%-4.50%, marking the third pause in rate hikes this year. The meeting minutes showed that officials are highly vigilant about the stickiness of inflation and the uncertainty of the economic outlook, believing that tariff policies may drive up prices and suppress growth, leading to an increased risk of stagflation with rising unemployment and inflation. Although the labor market remains resilient, corporate hiring has slowed due to policy uncertainty, and there is upward pressure on long-term inflation expectations. The Federal Reserve emphasized taking a cautious stance and highlighted the need for more data to assess the actual impact of tariffs on the economy, with market expectations for the first rate cut possibly delayed until September. This meeting underscored the difficult trade-offs policymakers face between curbing inflation and avoiding a hard landing for the economy.