Institution: As long as inflation remains under control, the Federal Reserve will have confidence to resume interest rate cuts in September.

Brian Jacobsen, Chief Economist at Annex Wealth Management, stated that the core message conveyed by core inflation is that any inflation caused by tariffs may be a process rather than a singular event. Ultimately, tariffs may manifest in consumer prices to varying degrees, but these one-time price increases will not happen all at once. This will likely confuse the Federal Reserve and economic commentators in the coming months. As long as the balance of profit and loss inflation rates and other market-based inflation expectations remain manageable, the Fed should have enough confidence to resume rate cuts in September.