Group 1 - The Federal Reserve's interest rate cut expectations have resurfaced, with Chairman Powell indicating that recent economic data could have supported further rate cuts if not for concerns over tariffs impacting inflation efforts [1] - Powell did not rule out the possibility of a rate cut in July, but emphasized that the strong economy and job market do not necessitate immediate action [1][4] - Several Federal Reserve officials have expressed support for an early rate cut, with Vice Chair Bowman suggesting a potential cut as early as July if inflation continues to decline or the job market weakens [1][4] Group 2 - Concerns remain regarding U.S. inflation, particularly due to uncertainties surrounding trade policies and tariffs, which could lead to persistent inflationary pressures [2] - The Federal Reserve maintained the federal funds rate target range at 4.25% to 4.5% during the latest meeting, marking the fourth consecutive time without a change, while also raising inflation expectations for 2025-2027 [2] - Recent inflation data has not yet shown significant impacts from tariff policies, indicating a delayed transmission effect on prices [3] Group 3 - The U.S. labor market remains robust, with non-farm payrolls increasing by 139,000 in May, despite being the lowest since February, and the unemployment rate holding steady at 4.2% [3] - Powell reiterated the dual mandate of the Federal Reserve to support employment while ensuring price stability, suggesting that the economy is in a "good position" and that immediate rate adjustments are unnecessary [4] - The Fed's economic outlook indicates a consensus for two rate cuts this year, although the number of officials not supporting a cut has increased, reflecting growing internal divisions [4]