Federal Reserve Chairman Powell reiterated a wait-and-see stance, awaiting more economic data to clarify policy direction. Morgan Stanley analysts predict that due to tariff policies pushing up inflation, no rate cuts are expected for the entire year of 2025, with rate cuts beginning in March 2026, totaling seven cuts throughout the year to a range of 2.5%-2.75%. Powell emphasized that the Fed's response will depend on how much the economy deviates from its dual mandate, with the impact of tariffs expected to manifest in the third quarter. The impact of immigration policy on the labor market is also considered significant.