The Federal Reserve is implementing a comprehensive strategy for interest rates amid persistent inflation concerns. Fed official Musalem highlights the importance of considering the overall trend rather than individual meeting decisions. While inflation remains above the target level and poses ongoing risks, the upcoming employment report may provide insights that could influence future rate cuts. Currently, the Fed’s policy is characterized as a moderate tightening. A clear picture requires continued data analysis and continuous adjustments to the interest rate outlook until the September meeting. Despite increasing job market risks, these haven’t materialized yet. Meanwhile, inflationary effects from tariffs are expected to decrease gradually. The interest rate strategy might involve pausing rate cuts, and if job market risks intensify, policy rates may require further adjustment.