Odaily reports that Nick Timiraos, a mouthpiece for the Federal Reserve, wrote that the Fed's economic outlook has undergone a significant change, but interest rate expectations have not yet fully reflected this change, and the threshold for rate cuts is rising. Fed officials have raised their core PCE inflation forecast twice in a row, from 2.2% in September 2023 to 2.5% in December 2023, and then to 2.8% in March 2024 (forecast for the end of 2025), and some officials have even raised their inflation forecasts for 2026 and 2027. In addition, 18 out of 19 officials believe that the inflation risk is tilted to the upside, which means that the Fed may need to see a significant weakening of the labor market before considering a rate cut. Fed Chair Powell stated that the upward revision of inflation expectations was "almost entirely" driven by changes in trade policy, and former Fed officials believe that the Fed may find it difficult to ignore the price-raising pressure caused by tariffs and may need to wait for more evidence of economic growth slowdown before taking action.