Federal Reserve Messenger: Worried about uncontrolled inflation, the Fed may temporarily postpone interest rate cuts

BlockBeats News: On May 6th, before the Federal Reserve announced its interest rate decision this Thursday, renowned financial journalist Nick Timiraos, also known as the "New Federal Reserve News Agency," published a latest report analyzing the dilemma faced by the Fed in responding to the Trump administration's "hasty" tariff policy, suggesting that the Fed may temporarily postpone interest rate cuts. The article suggests that the Federal Reserve will closely monitor changes in the labor market and use employment data as an important reference for its decisions: "The Federal Reserve will not cut interest rates prematurely due to expected economic slowdown, they need to see actual data, especially in the labor market." Tariffs may force the Federal Reserve to "take the latter path. Because tariffs may push up prices in the short term, their uncertainty will also slow down economic activity, leading to signs of stagflation, which may cause the Federal Reserve to postpone interest rate cuts. If inflation expectations get out of control, controlling inflation will become even more difficult. The article further points out that compared to five years ago, the "limiting factors" mentioned by former Federal Reserve Governor Brainard have worsened, as the economy has recently experienced a period of very high inflation. Even if the Federal Reserve may consider cutting interest rates internally, it still needs to remain vigilant about inflation in public to stabilize market expectations.