Recent economic observations indicate that the Federal Reserve may restart the interest rate cut process in September this year, but this decision will heavily depend on the performance of inflation indicators.

Brian Jacobsen, the chief economist at Annex Wealth Management, pointed out that the core inflation data indicates that the inflation caused by tariffs may be a gradual process. This situation could pose some challenges for the Fed and economic analysts in the coming months.

However, Jacobsen emphasized that as long as the breakeven inflation rate and other market-based inflation expectation indicators remain within a controllable range, the Fed has reason to resume interest rate cuts in September. This view suggests that the Fed may adopt a more cautious monetary policy stance.

It is worth noting that the trend of inflation indicators will be a key factor influencing the Fed's decisions. Market participants and policymakers will closely monitor various economic data, including the Consumer Price Index (CPI), to assess the balance between inflationary pressures and economic growth.

In addition, the global economic situation and geopolitical factors may also influence the Fed's decisions. Changes in international trade relations, adjustments in global supply chains, and the policy orientations of major economies may all become important considerations affecting U.S. monetary policy.

As the September Fed meeting approaches, financial markets will pay closer attention to the release of various economic indicators to predict possible policy directions. Regardless of the final outcome, the Fed's decisions will have a profound impact on global financial markets, and investors need to remain vigilant and adjust their investment strategies in a timely manner.