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

"Federal Reserve mouthpiece" Nick Timiraos' latest article states: "The June inflation data may cause Federal Reserve officials to remain cautious. Those policymakers who once predicted that tariffs would trigger more significant price pressures 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. The June data will only make the upcoming July and August data more important. Similarly, those policymakers who believe that tariffs will not trigger significant inflation (because companies' pricing power is not sufficient to support rising inflation) also have little reason to change their views after seeing Tuesday's report." In recent weeks, Federal Reserve Chairman Powell has stated that the threshold for the Federal Reserve to cut interest rates may be slightly lower than in the spring. This shift reflects an assessment that inflation risks may take longer to materialize, and therefore their impact will be relatively weak. If the Federal Reserve maintains its expectation that "the acceleration of inflation will not be too drastic," then based on a weakening labor market or improved inflation data, Powell may open the door to an interest rate cut as early as September." [Odaily Planet Daily]