On May 7, Nick Timiraos, a journalist for the Wall Street Journal known as the 'Fed’s megaphone', published an article stating that the Federal Reserve is somewhat caught in a bind lately. The chaotic implementation of tariff policies during the Trump era has left the Fed in a quandary: should it prioritize addressing the economic downturn, or should it first tackle the stagflation (economic stagnation + inflation) issue? Their two-day policy meeting this week will focus on how to clarify this tangled position. The Fed Chair Jerome Powell and his team may continue to choose to 'stay the course' and refrain from lowering interest rates for the time being. This 'strategic patience' is actually rooted in their unwillingness to abandon the goal of suppressing inflation too quickly. The current situation is somewhat akin to a goalkeeper facing a penalty kick—should they dive left (lowering rates to stimulate the economy) or dive right (maintaining high rates to curb inflation)? Powell admitted last month, 'This decision is really difficult.' Additionally, if the Fed rushes to stimulate the economy, it could exacerbate the short-term inflation issues caused by tariffs or supply chain shortages. In simple terms, whether to lower rates now is a dilemma; they can only wait and see.