Federal Reserve Messenger: The reason why the Federal Reserve remains inactive is because there are risks involved in any measures taken

BlockBeats News: On June 19th, Nick Timiraos, a journalist from The Wall Street Journal known as the "voice of the Federal Reserve," stated that currently, the purpose of the Fed's interest rate setting is not to help manage federal lending spending, but to maintain low and stable inflation in a strong labor market. The reason why the Federal Reserve remains inactive is that no matter what measures are taken, it sees risks. After four consecutive years of being above the target level, the inflation rate has approached the Federal Reserve's 2% target, but has not yet fully reached it. Premature interest rate cuts may trigger inflation again by the Federal Reserve. Many economists predict that due to rising import costs, businesses will raise prices, and interest rate cuts may stimulate more economic activity at the wrong time. The Federal Reserve does not want a situation where one year later, the inflation rate rises again above 3% and remains at this level. Long waiting times, economic uncertainty, and rising costs caused by tariffs may squeeze company profits, leading to layoffs and economic recession. The recent slowdown in the real estate market indicates that rising borrowing costs remain a major obstacle for interest rate sensitive economic sectors. The Federal Reserve has more reasons to keep interest rates unchanged, as the Middle East conflict may reverse the recent decline in energy prices. This uncertainty alone reinforces the reason for caution, as it superimposes one supply shock onto another tariff driven shock.