Svmuu News According to Jinshi Data on April 1, Federal Reserve's Schmid warned on Tuesday that it should not be assumed that rising energy prices will only have a temporary impact on inflation. This is because even before the war in Iran caused oil prices to surge, the inflation rate was already close to 3%, and the Fed's progress towards its 2% inflation target has also stalled. Schmid stated, "I think we cannot take the risks to inflation expectations lightly." He also pointed out that although most measures of medium- to long-term inflation expectations have remained stable, this does not provide him with much comfort. "Our task now is to take corresponding policy actions to validate these expectations." Schmid did not specify the exact policy measures he was referring to, although last year he twice opposed the Fed's decisions to lower interest rates. Last week, financial markets reflected investors' growing belief that rising oil prices might force the Fed to raise interest rates later this year to prevent inflation. However, this week, market views have shifted to believing that the Fed will keep interest rates unchanged.