The 'Federal Reserve Messenger': Non farm report indicates that the reasons for short-term interest rate cuts no longer exist According to a report by Golden Finance on June 5th, Nick Timiraos, the spokesperson for the Federal Reserve, pointed out that this spring's recruitment campaign has accelerated again, providing more basis for Federal Reserve officials who are concerned about inflation and believe that the current interest rate level is too low to curb a new round of price pressure. Some officials have recently hinted that the Federal Reserve should be prepared to raise interest rates later this year, at least partially withdrawing from the three 25 basis point rate cuts implemented in the second half of last year. The purpose of implementing these interest rate cuts at that time was to stabilize the labor market, and the current labor market situation looks much healthier than it did at that time. This employment report will not completely resolve the debate over to what extent the Federal Reserve should consider raising interest rates later this year, but it does further demonstrate that the reasons for short-term interest rate cuts are largely non-existent. The current stronger reason for supporting interest rate hikes comes from the prospect of inflation. The combination of multiple impacts such as artificial intelligence infrastructure construction, tariffs, and energy, even if progress is made in restoring commercial shipping passage through the Strait of Hormuz, may keep inflation far above the Federal Reserve's 2% target. If the Federal Reserve remains inactive during a period of rising inflation, the inflation adjusted real interest rate will decrease. Even if the labor market is not the main driving factor, this mechanism may become an important factor in promoting discussions on interest rate hikes.