The Federal Reserve (Fed) announced again at 2 p.m. Eastern Time on the 7th that interest rates would remain unchanged, and the target range for the federal funds rate would remain unchanged between 4.25% and 4.50%, in line with market expectations. The resolution was passed without objection.

In a statement after the meeting, the Federal Reserve said that the central bank is struggling with the effects of the Trump administration's tariff policy, and the risk of both inflation and unemployment rising has increased, making the economic outlook more uncertain. Fortunately, the economy as a whole "continues to expand at a strong pace." The Fed also explained in a statement that the reason why GDP fell into negative growth last quarter was mainly because businesses and households rushed to buy goods before the implementation of import tariffs, resulting in record imports.

The Fed did not forget to reiterate that it will continue to pay attention to inflation and employment risks.

The market currently expects the Fed to cut interest rates three times this year starting in July, but Claudio Irigoyen, an economist at Bank of America (BofA), believes that it would be best to delay the rate cut as much as possible. He said that rising inflation and declining economic activity will lead to a stagflation situation, and the Fed's work will become more difficult, so it should prioritize inflation risks and consolidate its own credibility; unless activity data falls sharply, the Fed should delay cutting interest rates.