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

Odaily Planet Daily News: "Federal Reserve Mouthpiece" Nick Timiraos wrote in his latest article: "June inflation data may make Fed officials continue to be cautious. Policymakers who have predicted that tariffs will cause 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, policymakers who believe that tariffs will not cause significant inflation (because corporate pricing power is not enough to support rising inflation) have little reason to change their views after seeing Tuesday's report. "In recent weeks, Federal Reserve Chairman Powell has said that the Fed's threshold for cutting interest rates may be slightly lower than in the spring. This shift reflects an assessment that inflation risks may take longer to manifest, so their impact will be relatively weak. If the Fed maintains its expectation that "inflation acceleration will not be too sharp", then Powell may open the door to rate cuts as early as September based on a weakening labor market or improved inflation data. " (Jinshi)