Federal Reserve Messenger: Today's CPI report will not change the Fed's policy direction

Odaily Planet Daily News - "Federal Reserve Messenger" Nick Timiraos The latest article states that "June's inflation data may continue to make Federal Reserve officials cautious, and policy makers who had predicted tariffs would trigger more significant price pressure later this year may not have much reason to change this view after seeing the June data - especially if retailers delay adjusting prices as much as possible. June's data will only make the upcoming July and August data more important. Similarly, policy makers who believe tariffs will not trigger significant inflation (because corporate pricing power is insufficient to support rising inflation) have little reason to change their views after seeing Tuesday's report." In recent weeks, Federal Reserve Chairman Powell has stated that compared to the spring, The threshold for the Federal Reserve to cut interest rates may be slightly lowered. This shift reflects an assessment that inflation risks may take longer to manifest, and therefore their impact will be relatively weaker. If the Federal Reserve maintains the expectation that inflation acceleration will not be too severe, Powell may open the door for a rate cut as early as September based on factors such as a weakened labor market or improved inflation data. ”(Golden Ten)