ChainCatcher news, according to Jinshi, "Fed mouthpiece" Nick Timiraos stated that today's "top-notch" inflation report needs to pay attention to two potential issues:Analysts expect that with the "Liberation Day" tariffs taking effect, the increase in commodity prices will accelerate in May (especially in June).Given that inflation has cooled somewhat by mid-2024, the year-on-year base itself is no longer advantageous (Note: The U.S. April core PCE price index recorded a year-on-year rate of 2.5%, the lowest since March 2021).

ChainCatcher news, according to Jinshi reports, Federal Reserve's Logan stated: "Tariffs may push up inflation, at least temporarily, while stimulative fiscal policy may boost demand. At the same time, uncertainty and market volatility may lead consumers to reduce spending."Logan also pointed out that high inflation expectations have become entrenched, and correcting them is costly. However, current monetary policy is in good shape, the risks to employment and inflation targets are "roughly balanced," and the labor market is strong, with inflation trends gradually approaching 2%.

ChainCatcher news, according to Jinshi reports, Federal Reserve's Daly stated on Thursday that although policymakers may still cut interest rates twice this year, current rates should remain stable to ensure that the inflation rate can reach the Federal Reserve's 2% target.Daly emphasized that as long as the inflation rate is above the target and there is uncertainty, inflation will be the focus of attention, given the robust state of the labor market. In addition, the U.S. trade court's ruling to block Trump's tariff measures was overturned by the appeals court on Thursday, highlighting the uncertainty in trade policy, which has caused concern among many businesses and the Federal Reserve.

According to CCTV News, on May 28 local time, the Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting held on May 6-7. The minutes indicate that the Federal Reserve agreed to maintain the target range for the federal funds rate at 4.25%-4.5%. Participants unanimously agreed that when considering the magnitude and timing of further adjustments to the federal funds rate target range, the committee would carefully assess subsequent data, the evolving outlook, and risk balance. The minutes state that in evaluating the appropriate monetary policy stance, the committee will continue to monitor the impact of future information on the economic outlook. If risks emerge that could hinder the committee's goals, they will be prepared to adjust the monetary policy stance as appropriate. Participants noted that their assessment would consider a wide range of information, including labor market conditions, inflation pressures and expectations, as well as developments in financial and international situations.The committee's assessment indicated that uncertainty regarding the economic outlook has further intensified, with rising risks of increased unemployment and inflation. Participants pointed out that if inflation persists while economic growth and employment prospects weaken, the committee may face difficult trade-offs. The ultimate adjustment of government policies and their impact on the economy are highly uncertain. Against this backdrop, all participants agreed that maintaining the federal funds rate target range at 4.25%-4.5% is appropriate. In considering the monetary policy outlook, participants unanimously agreed that given the robust economic growth and labor market, the committee is fully capable of waiting for a clearer outlook on inflation and economic activity. It is appropriate to adopt a cautious approach until the net economic effects of a series of government policy adjustments become clearer.Additionally, according to Jinshi News, the Federal Reserve minutes noted that the benchmark policy path implied by option prices (representing the mainstream market expectations) slightly shifted downward during this period, suggesting a potential rate cut of 1 to 2 times (25 basis points each) by the end of the year.

ChainCatcher news, the Federal Reserve's meeting minutes show that almost all officials believe that inflation may last longer than expected. Staff noted that the drag of tariff policy on economic activity is greater than they had previously assumed in their forecasts.

ChainCatcher news, according to Jinshi reports, U.S. Vice President Vance stated that cryptocurrency is a hedge against Washington's poor policies. Cryptocurrency is a hedge against soaring inflation.Bitcoin finally has a supporter and ally in the White House, with approximately fifty million Americans holding Bitcoin, and this number is expected to increase to one hundred million soon.

ChainCatcher news, according to Jinshi reports, Minneapolis Fed President Kashkari reiterated the necessity of maintaining caution amid the uncertainty of trade conflicts, emphasizing that defending inflation expectations is "crucial." On Tuesday, he stated at a Bank of Japan event in Tokyo that there is a "beneficial debate" among policymakers—whether to view the inflation impact of U.S. President Trump's tariffs as a temporary shock or as a long-term condition.In his speech, Kashkari pointed out that tariff negotiations may take months or years to fully resolve, that the taxation of intermediate goods takes time to transmit, and that the risk of inflation expectations becoming unanchored may increase over time. He stated, "I will prioritize defending long-term inflation expectations."The Federal Reserve has kept interest rates unchanged in all three meetings so far this year, and it is expected to do the same at the next meeting in June. Prior to this, the Fed cut rates by one percentage point in the last three months of last year.Economists generally expect tariffs to lead to inflation, but the extent of this is dependent on the scale of the tariffs and the level of retaliation from other countries. Tariffs could weigh on economic growth and lead to layoffs, potentially resulting in what is known as "stagflation," putting the Fed in a dilemma: whether to maintain high interest rates to curb inflation or to cut rates to support a struggling economy.

ChainCatcher news, according to CoinDesk, profit-taking in the cryptocurrency market continued ahead of the inflation data release on Friday, with Dogecoin and Ripple experiencing significant declines.Traders are closely monitoring the upcoming core Personal Consumption Expenditures (PCE) data, which is a key indicator of inflation for the Federal Reserve. Despite the uncertainty, inflows into spot ETFs remain steady, with BlackRock's IBIT achieving net inflows for 30 consecutive days.QCP points out that there is a divergence between digital assets and traditional tech stocks. While cryptocurrencies have maintained a solid momentum, the flow of funds into products like the TQQQ Nasdaq ETF has become cautious.

ChainCatcher news, according to Jinshi reports, the President of the New York Federal Reserve, Williams, stated that recent economic data is very good. The economy is close to full employment. The labor market is essentially in a balanced state. Inflation has been slowly and gradually declining.Due to trade issues, economic growth in the first quarter was unusual. Monetary policy is in a good position. The policy is slightly restrictive and in good shape. Some forward-looking indicators have sent concerning signals. Trade is an especially uncertain factor.

ChainCatcher news, according to Jinshi reports, the initial value of the U.S. one-year inflation rate expectation for May is 7.3%, expected 6.50%, previous value 6.50%.The initial value of the U.S. five to ten-year inflation rate expectation for May is 4.6%, expected 4.40%, previous value 4.40%.The initial value of the U.S. University of Michigan Consumer Confidence Index for May is 50.8, expected 53.4, previous value 52.2.

ChainCatcher news, according to Jinshi reports, Federal Reserve Vice Chairman Jefferson stated that the current moderately restrictive policy rate is well positioned to respond to changes in economic development.Tariffs may lead to rising inflation, and it remains uncertain whether the impact is temporary or persistent.

ChainCatcher news, according to The Block, data from the U.S. Department of Labor shows that the April CPI rose 2.3% year-on-year, lower than the expected 2.4%, while the core CPI remained at 2.8%. The overall inflation rate hit a four-year low and has decreased for three consecutive months. As a result, cryptocurrency-related stocks performed strongly:Coinbase (COIN) stock price rose 16% in a single day to $240Mining companies like Marathon Digital saw their stock prices rise as wellBoth the S&P 500 index and the Nasdaq index experienced gainsAlthough the cryptocurrency market overall fell 3.4% that day (with Bitcoin at $103,200), Nansen analyst Aurelie Barthere pointed out that blockchain stocks might be undergoing a "catch-up rebound," as market risk appetite gradually recovers with easing trade tensions. 21Shares expert David Hernandez believes that the easing of inflation may influence the Federal Reserve's interest rate decision in June.

ChainCatcher news, according to CoinDesk, 10x Research stated that the market generally expects the year-on-year growth rate of the U.S. CPI in April to remain unchanged at 2.4%."If this expectation comes true, the market may view this inflation report as good news. Unless there is negative tariff news, this week's inflation data could become a catalyst for Bitcoin's rise," said Markus Thielen, founder of 10x Research, in an interview."The CPI data could be bullish and may drive Bitcoin to a new high," he added.

ChainCatcher news, according to Jinshi reports, U.S. President Trump stated that costs are down and there is no inflation. This is in stark contrast to what the Federal Reserve and fake news media hope for.

ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Cooke stated that there are upward risks for both inflation and unemployment rates, and the economy may experience a slowdown in the short term. Our current monetary policy stance is moderately tight. The first quarter GDP reflects the true resilient nature of the economy.

ChainCatcher news, according to Jinshi reports, Fed's Barr stated that Trump's trade policy could push up inflation, lower economic growth, and increase unemployment later this year, which may present policymakers with a tricky decision on which issue to address.Barr said, "The scale and scope of recent tariff increases are unprecedented, and we do not know their final form; it is too early to say how they will affect the economy." However, he noted that the risks are evident. "In my view, higher tariffs could lead to disruptions in global supply chains and exert persistent upward pressure on inflation," he stated.He also pointed out that businesses need time to adjust their distribution networks. Some suppliers, especially small businesses, may not be able to adapt quickly enough and could go out of business, exacerbating the chaos in the supply chain.Barr said, "I am equally concerned that as the economy slows, tariffs will lead to rising unemployment." "Therefore, if we see both inflation and unemployment rising simultaneously, the Fed may find itself in a dilemma."

ChainCatcher news, Sweden's Nordea Bank points out that as risks rise, the Federal Reserve is waiting for more clarity. Trade policies and economic outlooks are seen as extremely uncertain, and the Fed hopes to wait for more definitive results. The market interprets this information as slightly hawkish, further reducing the likelihood of a rate cut at the June meeting. We agree with this market shift but expect that the Fed will ultimately focus on supporting economic growth and overlook the temporary rise in inflation. If long-term inflation expectations remain within a manageable range and align with the inflation target, the Fed should be able to disregard the temporary inflationary impact caused by tariffs.There is also a possibility that the short-term impact of tariff uncertainty on the economy will exceed current expectations. But for now, the Fed believes that this move has a limited impact on the economy, and there are some signs of progress in trade negotiations. Inflation remains above the target, and due to tariffs, it is expected to begin rising again.