The Federal Reserve suspends interest rate hikes to observe inflation and tariff risks The Federal Reserve maintains interest rate stability and continues to observe the impact of inflation trends and tariff policies on the economy. The data shows that the consumer price index for residents in April increased by 2.1% year-on-year, slightly higher than the target of 2% but showing a downward trend. Despite inflation approaching its target, Federal Reserve officials have doubts about the continued decline in inflation and are wary of the risks of rising commodity prices and businesses passing on tariff costs to push up prices. Fitch Ratings suggests that the current decline in inflation may be a "calm before the storm". The Trump administration's increase in tariffs has pushed up import costs, becoming a key factor for the Federal Reserve to maintain interest rates unchanged. Officials believe that premature interest rate cuts are too risky until the impact of trade policies on employment and prices is clear. Data shows that the consumer side is weak: consumer spending only increased by 0.2% in April, and the personal savings rate rose to 4.9%, reflecting households increasing savings and reducing expenses due to the uncertainty of tariff policies. Market traders expect a possible interest rate cut in September, but the Federal Reserve has made it clear that it will not adjust interest rates unless inflation falls sharply or unemployment rates surge, and will maintain policy patience in the short term.