In May 2025, the US economy is standing at a delicate crossroads. Trade policy and the direction of the Fed's monetary policy have become the focus of global attention.
1. Inflation is still the "number one enemy", but the interest rate cut window is not closed
In an interview after the Oakland Rotary Club event, Daley made it clear that despite the robust performance of the labor market, the inflation issue remains the core focus of the Fed's policy. She emphasized that as long as the inflation rate remains above the 2% target and there is uncertainty about the speed of decline, monetary policy must remain "moderately restrictive."
2. Trump's tariff policy has become a "double-edged sword", and the Fed is walking on thin ice
Daley specifically mentioned that the Fed's maintaining interest rates in the range of 4.25%-4.5% in May was a "positive" choice in order to assess the impact of the Trump administration's trade policy.
3. There is still hope for a "soft landing" of the economy, but risks cannot be ignored
Despite the challenges, Daley remains cautiously optimistic about the current economic situation. She pointed out that current data shows that the economy is slowing down but not collapsing, corporate investment behavior is becoming more rational (such as reducing the scale of expansion), and inflation is also showing signs of a mild decline. These factors have temporarily saved the Fed from having to make a painful choice between "fighting inflation" and "maintaining growth."
Summary: A silent game is being played
Clear message: The game between the Fed and Trump's policies has quietly begun. On the one hand, the central bank is trying to protect the economy with a prudent monetary policy; on the other hand, Trump's trade war may disrupt all plans at any time. For ordinary investors, the keyword for 2025 may be "patience" - as Daly said, "the situation may become clearer over time." But before that, the market may only be able to move forward cautiously in this policy fog.
XAUUSD XAUUSD XAUUSD XAUUSD XAUUSD GOLD
1. Inflation is still the "number one enemy", but the interest rate cut window is not closed
In an interview after the Oakland Rotary Club event, Daley made it clear that despite the robust performance of the labor market, the inflation issue remains the core focus of the Fed's policy. She emphasized that as long as the inflation rate remains above the 2% target and there is uncertainty about the speed of decline, monetary policy must remain "moderately restrictive."
2. Trump's tariff policy has become a "double-edged sword", and the Fed is walking on thin ice
Daley specifically mentioned that the Fed's maintaining interest rates in the range of 4.25%-4.5% in May was a "positive" choice in order to assess the impact of the Trump administration's trade policy.
3. There is still hope for a "soft landing" of the economy, but risks cannot be ignored
Despite the challenges, Daley remains cautiously optimistic about the current economic situation. She pointed out that current data shows that the economy is slowing down but not collapsing, corporate investment behavior is becoming more rational (such as reducing the scale of expansion), and inflation is also showing signs of a mild decline. These factors have temporarily saved the Fed from having to make a painful choice between "fighting inflation" and "maintaining growth."
Summary: A silent game is being played
Clear message: The game between the Fed and Trump's policies has quietly begun. On the one hand, the central bank is trying to protect the economy with a prudent monetary policy; on the other hand, Trump's trade war may disrupt all plans at any time. For ordinary investors, the keyword for 2025 may be "patience" - as Daly said, "the situation may become clearer over time." But before that, the market may only be able to move forward cautiously in this policy fog.
XAUUSD XAUUSD XAUUSD XAUUSD XAUUSD GOLD 
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Good at solving all trading problems, doubling the account in a week, and making a stable profit of 300% in a month
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
🚀Private VIP: t.me/HenryDovitt
👍Market exclusive signal: t.me/Henryffjyfylffc108
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.