DWS Chief US Economist Christian Scherrmann pointed out that as expected, the Federal Reserve kept policy interest rates unchanged, but this decision was not unanimous. Board member Milan voted in favor, supporting a 25 basis point rate cut. Currently, DWS still believes that the Federal Reserve will eventually cut rates further to a neutral level, although the market may have to wait for some time to see this happen. DWS stated that the FOMC press release emphasized the additional uncertainty brought about by the escalation in the Middle East situation. From the updated forecasts, the Federal Reserve expects that the rise in oil prices will mainly impact overall inflation, while also having some effect on core inflation - although this impact will not be seen until 2026. Federal Reserve Chairman Powell later clarified that the impact of tariffs also contributed to these changes. The expected slight enhancement of economic growth in 2026, considering the potential impact of rising oil prices and the downwards adjustment of economic growth momentum in 2025, is particularly noteworthy. Despite rising inflation and stronger economic growth, the dot plot still shows a rate cut in 2026. During the press conference, Powell basically followed textbook central bank responses to energy shocks. He emphasized that inflation expectations remain stable and hinted that the Federal Reserve plans to overlook the impact of rising energy prices. The focus will be on price pressures related to tariffs, especially commodity inflation. Although he acknowledged that inflation may rise in the short term, he seemed optimistically believe that the impact of tariffs will begin to fade by mid-2026. He further stated that this is still a key condition for rate cuts, and that the labor market will determine the extent of the eventual accommodative policy. Regarding the issue of neutral rates, Powell reiterated that current rates are at the upper end of the neutral range. He also surprisingly discussed the issue of succession, stating that if a successor has not been confirmed, he will continue to serve as interim chairman and remain on the board until the Department of Justice investigation is concluded. DWS stated that overall, the guiding principle of monetary policy remains the development of inflation expectations and factors that may influence its trajectory. Currently, central bank governors in various countries seem quite confident about this. The stubborn tariff-driven inflation and the impending impact of rising energy prices make this stance seem bold and may even remind one of past periods of complacency. History has shown that the credibility of central banks is a key factor in anchoring inflation expectations. This may explain why Powell unexpectedly expressed confidence in his plan to continue in office for some time.