
财经少华|May 06, 2025 12:01
The Federal Reserve may temporarily postpone interest rate cuts
On May 6th, before the Federal Reserve announced its interest rate decision on Thursday, the dilemma faced by the Fed in responding to the Trump administration's "hasty" tariff policy was analyzed, suggesting that the Fed may temporarily postpone interest rate cuts.
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. 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.
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