The dovish forward guidance has been rejected, now switching to data-driven approach — meaning future rate hikes or cuts will depend entirely on oil prices and CPI figures, and the market will have to guess for itself.

Coin World News reports that Minneapolis Federal Reserve President Kashkari said on Wednesday that the Federal Reserve must focus on containing the mounting inflation risks, but it is currently "far from" the point of predicting the next interest rate adjustment. He pointed out that the "inflation shockwave" triggered by the Middle East war may persist, and this concern is gradually reflected in the bond market. When discussing the impact of the Middle East war on the U.S. economy, Kashkari stated that compared to the risk of deterioration in the labor market, the inflation risk seems greater at the moment, but he also emphasized that the Federal Reserve "must pay attention to both." He previously supported the Fed's decision to keep interest rates unchanged in April but opposed continuing to retain dovish forward guidance, believing that the Fed should adopt a "neutral guidance," meaning future interest rates depend on subsequent data performance.