It may be appropriate in the near term to adjust policy rateEconomy is slowing.Not clear the impact of tariffs on inflation.The economy has held up well despite the tariffs we have not seen the effects of the tariffs as businesses built their inventory in anticipation.The Fed needs to respond to the slowing economyWe won't know the answer to inflation for a while, meanwhile data on slowing is clear.I can see two rate cuts this year.If inflation does rise because of tariffs, the Fed could pause or even hike.These tariffs affects take a lot longer to be clear. If the data is a slowing, how long can we wait for the tariff effectIt might be better to cut and then pause for reverse a cut versus sitting here and waiting.The unemployment number is a very important, but Fed knows provisions are possible.Wage growth is declining, which would suggest the labor market is coolingWill not comment on the Pres. personnel choices, but does not doubt the BLS dataUltimately you cannot fake economic realityPeople will feel the economy. They cannot be convinced jobs or inflation data are different than what they are.Since the US jobs report, it’s no surprise that commentary from Fed officials will shift. The Fed is data-dependent, and this piece of data came in weaker than expected. The average job gain over the last three months is just 35,000—a very different story from earlier in the year. As a result, market rates have come down, even though the Fed funds rate—under the Fed’s direct control—has not moved. That means the data itself is already providing some rate-driven stimulus. A Fed cut today would make headlines and shift the narrative, taking some control away from Trump. But if they cut 50 basis points now, he’d likely call for 100 tomorrow. They will always be chasing their tail. Until that point where inflation soars and then it will be their fault too. This article was written by Greg Michalowski at investinglive.com.