#DOGS# Recently, U.S. economic data has sparked market discussions about the possibility of the Federal Reserve (FED) lowering interest rates. However, recent statements from several officials of the Federal Reserve (FED) seem to have dampened this expectation.

On Thursday, several officials from The Federal Reserve (FED) spoke, and they unanimously agreed that more time is needed to assess the impact of tariffs on inflation. These officials stated that they are not yet prepared to support a rate cut decision at the upcoming meeting.
Although the two Federal Reserve governors appointed by Trump previously stated that if inflation remains under control, they might consider starting to cut interest rates at the meeting at the end of July. However, around ten policymakers, including Federal Reserve Chairman Powell, subsequently expressed differing views on this perspective.
San Francisco Fed President Daly acknowledged in an interview that there is growing evidence suggesting that tariffs may not trigger a large-scale or sustained rise in inflation. However, this only makes her open to the possibility of a rate cut in the fall. She emphasized that she has always expected to start adjusting interest rates in the fall, and that view has not changed.
Since the beginning of this year, the price growth rate in the United States has been lower than expected. The inflation indicator favored by The Federal Reserve (FED) rose by 2.1% year-on-year in April, just slightly above the target level of 2%.
At the same time, the latest published data shows that the number of people continuously applying for unemployment benefits has risen to its highest level in nearly a year and a half, with a significant increase over the past six weeks. This data reflects that more people may be facing the plight of long-term unemployment.
Despite some worrying signs in the economic data, The Federal Reserve (FED) officials seem more inclined to adopt a cautious approach, not rushing to make a decision on interest rate cuts. They emphasize the need for more time to observe economic trends, especially the long-term effects of tariffs on inflation.
This cautious attitude reflects the Federal Reserve's careful consideration in formulating monetary policy. Against the backdrop of increasing global economic uncertainty, the Federal Reserve aims to avoid premature or unnecessary policy adjustments to ensure the long-term stable growth of the economy.
Market participants and economists will continue to closely monitor the remarks of Federal Reserve officials and the upcoming economic data to predict the future policy direction of the Federal Reserve. In any case, the decisions made by the Federal Reserve will have a significant impact on global financial markets.