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

"The Fed's Echo Chamber" Nick Timiraos's latest article states: "The inflation data for June may continue to make Fed officials remain cautious. Those who have predicted that tariffs will trigger more significant price pressures later this year may not have much reason to change that view after seeing the June data, especially if retailers try to delay price adjustments as much as possible. The June data will only make the upcoming July and August data appear more important. Similarly, policymakers who believe that tariffs will not trigger significant inflation may have almost no reason to change their views after seeing Tuesday's report." In recent weeks, Federal Reserve Chairman Powell has stated that the threshold for cutting interest rates may have slightly lowered compared to spring. This shift reflects an assessment that inflation risks may take longer to materialize, thus their impact will be relatively weaker. If the Fed maintains the expectation that "inflation acceleration will not be too drastic", then based on softening labor market or improving inflation data, Powell may open the door for rate cuts as early as September."