Analyst: Tariff Pass-Through Has Limited Impact on CPI, Fed Poised for September Rate Cut

According to a report by Jinse Finance, Guy Lebas, Chief Fixed Income Strategist at Janney Montgomery Scott, stated that July's CPI was largely in line with expectations and did not pass on much of the tariff impact to consumer prices. This is certainly enough to lock in the possibility of a rate cut in September. There is still some time before next month's meeting, but at least in terms of inflation data, the current situation is not concerning. As an independent and impartial economist, these data can be interpreted in two ways: first, since the effects of tariffs have not yet fully materialized, inflation may rise in the future; second, companies are absorbing the impact of tariffs, so it will not be passed on to consumer inflation. In either case, the Federal Reserve will have sufficient grounds to cut rates in September, provided that next month's data does not show a significant acceleration.