Federal Reserve's Mester: Inflation Eases but Remains Above 2% Target
According to a report by Jinse Finance, Federal Reserve's Mester stated that the current state of monetary policy is good. If inflation expectations remain stable, it is feasible to balance addressing inflation and rising unemployment rates. If inflation expectations become unstable, the Fed's policy should prioritize price stability. The U.S. economy has potential, the labor market is stable, and inflation has eased but remains above the 2% target. Economic policy uncertainty is exceptionally high. Even after the trade situation eased on May 12, tariffs could lead to a weakening U.S. labor market and rising prices. The impact of tariffs on inflation could be temporary or lasting. If trade tensions continue to ease, inflation may return to target levels, the labor market will remain resilient, and the current monetary policy will remain appropriate.
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