Institutional Analysis: Improvement in U.S. inflation data has not yet green-lighted a rate cut by the Federal Reserve

BMI Chief Economist Cedric Chehab said that the latest U.S. inflation data seems to have improved, but there is no signal yet for the Federal Reserve to restart rate cuts unless the U.S. economic growth is impacted. He pointed out that a large part of the reason for slowing inflation is due to falling commodity prices in recent months. The huge tariffs imposed by the Trump administration on goods could quickly lead to price increases, which means commodities will once again exacerbate inflation, making it difficult to predict short-term inflation and also challenging for the Federal Reserve to provide appropriate guidance.