Will CPI fail to shake the interest rate cut in September? Has the Fed made up its mind?

According to analysts at Evercore ISI, the Federal Reserve has shifted its focus from inflation data to labor data, prioritizing the labor market over the U.S. Consumer Price Index (CPI). Strategists believe that even if inflation exceeds expectations, the Fed may still concentrate on preventing deterioration in the labor market, making a rate cut in September highly likely. While inflation data may impact the Fed's policy flexibility, the soft data showing a 0.2% increase in core CPI on a month-on-month basis will be a clear signal of risk appetite, providing the Fed with greater room to proactively cut rates. It is expected that the CPI report will indicate that inflation is still on a downward trend