Economic data over the summer is anticipated to give initial insights into the effects of tariffs on pricing. Federal Reserve Chair Jerome Powell indicates that any potential interest rate reductions are likely to occur in the fall. Atlanta Federal Reserve President Raphael Bostic suggests that a July rate cut may be premature due to insufficient data regarding inflation and labor market dynamics. Clarifying the impact of tariffs on inflation remains a primary concern, with uncertainty about pricing behaviors from companies and broader economic implications.
"I don't think we're going to have enough clarity about the trajectory of the economy to really know for sure by July... without that kind of clarity, I don't think it'll be appropriate to move in any direction at this point but rather to wait."
"Textbook economics says that tariff policies lead to a one-time inflationary shock. But that's theory, not practice. The current practical realities of the economy are far from textbook."
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