Odaily Planet Daily reported that if tariffs are further downgraded, the Federal Reserve may be expected to cut interest rates. The current growth pressure has not been reflected, and the non farm payroll remained strong in April, while the ISM manufacturing and service PMI also maintained resilience. Even if the Federal Reserve wants to react preventively, there is no sufficient reason, let alone Powell's term ending in May next year, and the risk of premature reaction is also high. Therefore, in the dilemma of balancing inflation and growth, the Federal Reserve is more likely to choose a wait-and-see approach rather than a preemptive strike. However, if the tariff risk can be further downgraded in the future, the Federal Reserve has the opportunity to cut interest rates in the third and fourth quarters to alleviate the growth pressure at that time. (Golden Ten)
