Everything you drink will be made by one company, it seems.

I'm David Brancaccio. First, it is the economic policy that affects nearly every woman, man, child, and pet in America

when our central bankers dial in lower interest rates. Stock index futures on this Monday are pointing to a lower opening on Wall Street. This follows a rally Friday, seen as a response to America's central banker-in-chief, Jerome Powell, saying, changing economic conditions mean, quote, adjusting our policy stance. Market players took that to mean an interest rate cut is coming three and a half weeks from now. It is a shift from

worrying about tariffs hurting inflation to a worry about tariffs and other factors hurting the job

market. Marketplace's Mitchell Hartman reports. The Fed's dual mandate from Congress is to pursue

stable prices and maximum employment. Recently, a terrible July jobs report raised the risk that job creation is tanking.

The Fed will try to head that off by lowering interest rates a bit, says MIT's Daniel Hornung.

But it still has to worry about inflation.

Tariff-related price increases are just beginning to work their way through the system, and actually,

tariff rates are even increasing.

It's likely that inflation will move higher.

Before the Fed meets to set interest rates in September, it'll have new inflation numbers

to chew over.

Are the price increases only in tariff-related import-sensitive goods, electronics,

tools, furniture, or are they spreading to other categories? Keep in mind, inflation overall is

still above the Fed's 2% target, says Jeffrey Roach at LPL Financial. We really need to see

some of the categories that are a little more sticky.

And the services, insurance prices, ease up a little bit.

Bottom line, says Roach, tariffs aren't going away.

Inflation pressures aren't going away.

But for the moment, the Fed appears ready to focus on risks to the job market first.

I'm Mitchell Hartman for Marketplace.

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