The latest inflation data has little impact on reducing the uncertainty of tariff reductions.

Eric Winograd of AllianceBernstein wrote that the latest inflation data does not do much to reduce uncertainty regarding tariffs, which may lead the Fed to continue its wait-and-see approach. A slight decrease in the housing price index suggests "the potential trend of decreasing inflation still exists." However, prices of some goods that may be impacted by import tariffs are rising faster. "In fact, if it weren't for the uncertainty related to tariffs, I believe the Federal Open Market Committee would have had enough confidence in this path to start cutting rates sooner," Winograd said. He stated that the current policy gridlock may continue until the situation becomes clearer.