The focus on the month-over-month change in the July inflation readings will be high on Wednesday because more members of the FOMC have indicated they will pay close attention to the next few price-level readings in determining whether they believe their forecast (getting inflation down to 2% over the next two years) is defensible absent further policy tightening. The new Fed chairman has in the recent past expressed little appetite for this type of framework that conditions policy-sensitive forecast revisions on high-frequency data. Here's Warsh's April 2025 speech: "I do not find the current Fed policy of ‘data dependence’ of much real value. We should care little about two numbers to the right of the decimal point in the latest government release. Breathlessly awaiting trailing data from stale national accounts—subject to significant, subsequent revision—is evidence of false precision and analytic complacency."(Nick Timiraos)