According to the Federation's estimates, the several mysterious mecha that had appeared with unknown powers were indeed formidable, but the Unified Army's overall standard strength had held back those high-end forces. Thus, even if the two sides went to war, the conflict would inevitably take time to unfold. No matter what, both sides needed time to prepare before going to war.
The Unified Army needed that time to reorganize its entire military, while the Federation needed it to transfer and conceal supplies and deal with its internal problems—especially to develop Custom Mecha for Newtypes that could contend against the Unified Army's high-end forces. They did not expect to produce mecha capable of truly rivaling Camilla, Ferocious, and the Red Dragon in a short time, but as long as the new models could hold them off through sheer numbers, that would be enough. Both sides were therefore racing to prepare for the coming all-out war.
The Unified Army flew the banner of peace and followed the Federation's Original Constitution. In the Federation's eyes, that naturally meant they could not do what the Zabi family had done when they ruled Zeon—dropping satellites from space to bomb Earth. With no such concern hanging over them, the Federal High-level was confident they could handle their internal problems.
Moreover, judging from the current situation, although the Federation had temporarily fallen into a passive position, its influence over the past several decades meant it could mobilize even more troops at any time. Once this phase passed, the ordinary people who had been deceived, and even the soldiers who had genuinely benefited from it, would once again unite behind their beliefs. Although the Federation lagged slightly behind the Moon in industrial technology, its vast number of industrial facilities and the resources and money it could draw upon