Alexandra Wilson-Elizondo, Co-Chief Investment Officer of Multi-Asset Solutions at Goldman Sachs, commented on the July Consumer Price Index (CPI) data, noting that it aligned with market expectations. Core inflation climbed 3.1% year-over-year, according to BlockBeats. The Federal Reserve sees this data as supporting their rationale for believing that tariffs’ impact on price levels is temporary. Despite rising prices, companies are mitigating pressure by reducing inventory and adjusting prices cautiously. They are also taking consumer price sensitivity into account during these adjustments. The Fed’s policy remains highly dependent on future economic indicators. With inflation under control and revised employment data showing signs of a weakening labor market, the focus will shift to the impact on jobs in the coming months. Overall, this inflation report supports the expectation of a potential rate cut by the Federal Reserve in September, which is expected to have significant market implications.