Core Viewpoint - The relationship between the Federal Reserve's dual policy goals of maintaining price stability and achieving full employment is under significant tension, which was not anticipated by the Federal Reserve itself [1] Group 1 - The Federal Reserve is facing challenges in balancing its two main objectives: price stability and full employment [1] - The current economic environment has led to unexpected strains on the Federal Reserve's policy framework [1] - The implications of this tension could affect future monetary policy decisions [1]

Core Viewpoint - The Federal Reserve cannot make progress on its dual policy goals of price stability and employment if the current tariffs imposed by Trump remain in place [1] Group 1 - The Federal Reserve is unable to take "preemptive" actions under the current circumstances [1]

Core Insights - The Federal Reserve is focusing on the more significant of its policy goals, which are inflation and employment [1] - Clients have expressed a feeling of being under-allocated in fixed income assets [1]