TechFlame reports that although the three-month average of employment growth in the US is currently only 35,000 people, Chris Weston, head of Pepperstone research, said that Fed policymakers — especially those who are more concerned that core PCE will continue to deviate from the 2% target — will only support an “insured interest rate cut” after the August non-farm data released on September 5 is weak again. He added that the Federal Reserve's credibility is being severely tested. Cutting interest rates in September when the core PCE is expected to be 100 basis points above the target will be a difficult decision in any environment. Weston also pointed out that it is currently unclear whether the transmission effect of tariffs will gradually become apparent. (gold 10)