BlockBeats News, April 11: Federal Reserve's Kashkari said in a speech that evidence of a rise in long-term inflation expectations has not yet been seen. Investors may think that if the trade deficit narrows, the attractiveness of U.S. investment will weaken. The notion of a shift in investor preference may be credible. The weakening of the U.S. dollar indicates that investor preferences are changing. I believe we still have a long way to go from the market conditions seen during the COVID-19 pandemic, and ultimately have the ability to manage some of these transitional processes, smoothing out some of the imbalances. We cannot be sure where yields will ultimately stabilize, we can only smooth out this change.

CPI data shows many positive signals, and the impact of tariffs suggests that inflation will rise again. Tariffs have pushed up inflation and reduced economic activity. The economic outlook depends to a large extent on the progress and speed of tariff negotiations. If inflation issues continue to linger, it may take longer to reach a comfortable level for the rate cuts. I think intervention by the Federal Reserve or the Treasury should only be done as a last resort and should be carefully taken to suggest a weakening commitment by the Fed to lower inflation. The Fed has tools to provide more liquidity. (FX678)