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Fed Musalem: Inflation eased, but above 2% target

According to online reports, Federal Reserve Musalem said that monetary policy is currently in good shape. If inflation expectations remain stable, it is feasible to balance inflation and rising unemployment. If inflation expectations become unstable, the Fed's policy should prioritize price stability. The U.S. economy has potential, the labor market is stable, and inflation has eased, but above the 2% target. Uncertainty about economic policies is extremely high. Even after the trade situation eased on May 12, tariffs could weaken the U.S. labor market and increase prices. The impact of tariffs on inflation may be temporary or long-term. If trade tensions continue to ease, inflation may return to target levels, the labor market remains resilient, and current monetary policy will remain appropriate.

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