"The Fed whisperer" Nick Timiraos writes that July's Consumer Price Index (CPI) data supports the Fed's consideration of interest rate cuts at its next meeting. However, given recent signs of potential weakness in the labor market, the focus of discussions at the September meeting will be on whether to take a more traditional 25 basis point cut or a bolder 50 basis point cut. The inflation data released on Wednesday did not directly address this issue; instead, future economic data, especially weekly initial jobless claims and the upcoming August non-farm payroll report, will become key factors. While the inflation report showed relatively moderate performance, strong increases in housing costs could influence how the data is perceived. Nevertheless, Fed leaders have made it clear that they are prepared to start cutting interest rates next month, partly because inflation data from May and June was also relatively low.