Federal Reserve Governor Kugler and Kansas Federal Reserve Chairman Schmid stated on June 5th that the urgency of current inflationary pressures outweighs potential downside risks in the labor market, implying support for maintaining monetary policy at current levels for a longer period of time. Core viewpoints Kugler: Inflation faces greater upward risks, employment and output have potential downward risks, and support maintaining the federal funds rate (4.25% -4.50%) unchanged; Tariffs have driven up prices, and although there are signs of cooling down in the economy, it has not significantly slowed down; Pay attention to the potential inflationary effects of policies such as immigration restrictions and tax reduction bills (such as a tightening labor market that may lag behind in pushing up wages). Schmid: Optimistic about the short-term economic downturn, but more concerned about the immediate impact of tariffs on inflation, believing that the magnitude and lag effect of their push up prices are not yet clear. Market divergence and data foresight Some officials advocate "ignoring" tariff inflation and tend to lower interest rates in the second half of the year; Powell and others believe that it is necessary to balance inflation and employment risks, and advocate a wait-and-see approach. Non farm employment is expected to increase by 130000 people in May (previously 177000), and the unemployment rate remains stable at 4.2%; The CPI may accelerate again in May due to the impact of tariffs, and the PCE inflation rate in April was 2.1% (slightly higher than the 2% target). The Federal Reserve's June policy meeting is likely to keep interest rates unchanged and enter a quiet period next week.