On Thursday, this year's voting member and President of the Federal Reserve Bank of Kansas City, Esther George, warned that the U.S. may face a dual challenge of inflation risks and concerns about economic growth, which could force the Federal Reserve to seek a balance between the two. She stated: "While inflation risks seem to be on the rise, discussions with contacts in my region and some recent data suggest that high uncertainty may suppress economic growth, which means the Federal Reserve may need to seek a balance between inflation risks and economic growth concerns." George's warning comes as the market increasingly worries that the Federal Reserve may face a "stagflation" scenario—where economic growth slows while inflation remains high. Recently, due to concerns that the Trump administration's tariff policies could harm economic output, U.S. Treasury yields have fallen sharply. Changes in inflation expectations are one of the main reasons for her concerns. George believes that current inflation is more stubborn and "sticky" than she had anticipated. She noted that while she was previously optimistic about inflation continuing to cool, the recent rise in consumer inflation expectation indicators based on surveys has made her more worried about this process: "There is no doubt that the survey indicators of inflation expectations are not perfect and are susceptible to interference, but with inflation just at a 40-year high, now is not the time to let our guard down." Despite the risks, George pointed out that the U.S. labor market remains robust, with the unemployment rate close to the equilibrium level estimated by many economists. In her speech at the U.S. Department of Agriculture conference, George also made a noteworthy suggestion: "Given that current food price fluctuations are much smaller than in the past, it may be appropriate to replace the widely watched core inflation measure (which excludes food and energy prices) with a measure that only excludes energy prices." Risk Warning and Disclaimer Markets are risky, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk