$SOL There is little hope for short-term interest rate cuts, and everyone will have to continue to endure this difficult period.

Hey, everyone knows that Nick Timiraos, known as the "Fed's megaphone," right? He recently said something quite concerning. He mentioned that President Trump's sudden tariff policies could push the Federal Reserve into a super tough position. They might have to deal with an economic recession or face stagflation, which is that terrible situation where economic growth stagnates but prices keep rising.

The Federal Reserve is meeting this week, and they'll probably have to put in a lot of effort to figure out how to communicate these tricky issues. Powell and the others will likely still take a wait-and-see approach and won't easily cut rates, while also considering how to refine this wait-and-see strategy. They are being so cautious mainly because they don't want to give up their efforts to combat inflation too early.

Richard Clarida, a big shot in the bond world at Pacific Investment Management Company, also stated that this is not the time for the Fed to rush into rate cuts just because they see the economy might slow down. They need to see solid data, especially from the labor market, before taking any action.