ANZ Bank: The impact of tariffs on US inflation may be temporary. The Federal Reserve is expected to resume rate cuts in September.

Brian Martin, the chief economist of Australia and New Zealand Banking Group (ANZ), stated that the impact of tariffs on US inflation will be temporary, and the Federal Open Market Committee is expected to resume interest rate cuts in September. He pointed out that there is still a high level of uncertainty surrounding tariff-induced inflation, which is reflected in the internal disagreements within the Federal Open Market Committee regarding the path of the federal funds rate for this year. However, the US economy is expected to further slow down, and he predicts that around 40% of the announced tariffs will be absorbed by sectors other than consumers.