⭐The Federal Reserve (FED) dual mandate is at odds.

The Federal Reserve is now in a state of near desperation, as its dual mission of full employment and stable prices is showing a trend in opposite directions. Currently, the uncertainty of U.S. government policies is astonishingly high, and this will also be a key factor in determining the timing and magnitude of related changes.
Trump's tough measures on tariffs have further exacerbated the situation for The Federal Reserve (FED). The U.S. government's policies of imposing tariffs abroad, expelling immigrants, and cutting taxes will drive up inflation in the U.S. and may lead to an economic recession or even "stagflation." In this complex situation, The Federal Reserve (FED) seems to have no choice but to helplessly stand by, caught in a state of wait-and-see.
From the current employment and price situation, although the unemployment rate in the United States is currently stable at a low level and the labor market appears solid, inflation is "at a high level to some extent," and there are increasing risks of rising unemployment and worsening inflation. This puts The Federal Reserve (FED) in a dilemma, as the policy measures required to maintain full employment are completely opposed to those needed to control inflation. If measures such as interest rate cuts are taken to stimulate economic growth to promote employment, it may further push up inflation; conversely, if interest rates are raised to stabilize prices, it may lead to rising business costs, which in turn could trigger a wave of layoffs and increase the unemployment rate.
Although the market generally believes that interest rate cuts are necessary, the Federal Reserve seems increasingly likely to wait until the end of the third quarter before there may be an opportunity for a rate cut. At the monetary policy meeting that ended on May 7, the Federal Reserve decided to keep interest rates unchanged for the third consecutive time, reflecting its cautious attitude in the current situation. Powell emphasized multiple times in his speech the significant "uncertainty" regarding tariff policies and their impact on inflation and growth, and the need for more "hard data" for confirmation, ruling out the possibility of "preemptive action."
Currently, there are ongoing speculations regarding the future policy direction of The Federal Reserve (FED) from various parties. However, it is certain that under such conflicting dual mandates and extremely high policy uncertainty, every decision made by the FED will be closely watched. Its decisions will not only have a profound impact on the U.S. economy but will also create waves in the global economy and financial markets. Moreover, Trump's tariff policies and the subsequent economic policy directions of the U.S. government will continue to sway the balance of decision-making at the FED. How the FED will ultimately choose between these dilemmas remains to be seen.