Institution: The Federal Reserve will downplay the temporary inflationary impact of tariffs

BlockBeats News: On May 9th, Nordic Bank in Sweden stated that while risks are rising, the Federal Reserve is waiting for more clarity. Both trade policies and economic prospects are seen as extremely uncertain, and the Federal Reserve hopes to wait for clearer results. The market interpreted this information as slightly hawkish and further reduced the possibility of a rate cut at the June meeting. We agree with this change in the market, but expect the Federal Reserve to ultimately focus on supporting economic growth and ignore the temporary rise in inflation. If long-term inflation expectations remain within a controllable range and are consistent with inflation targets, the Federal Reserve should be able to ignore temporary inflation shocks caused by tariffs. Another possibility is that the short-term impact of tariff uncertainty on the economy will exceed current expectations. But for now, the Federal Reserve believes that this move has limited impact on the economy, and there are also some signs of progress in trade negotiations. Inflation remains above target and is expected to start rising again due to tariffs. (Golden Ten)