The Federal Reserve's testimony: "Top-notch" inflation report hides two major concerns. Caution is needed regarding the low base effect from last year.

"Federal Reserve Whisperer" Nick Timiraos stated that two potential issues should be noted in today's "excellent" inflation report: 1) Analysts expect that as the "liberation day" tariffs take effect, the rate of price increases for goods in May will accelerate. 2) Considering that inflation has already cooled down by the middle of 2024, the year-on-year base itself is no longer advantageous.