This interview explains why this would be the wrong move by the Fed because the inflation and output effects of tariffs are not temporary.
CNBC CNBC- Access Middle East: with Dan Murphy and David Roche: What to expect from Jackson Hole & why tariffs are not of temporary effect.
Like it or not, the US Fed's Jackson Hole Conference is going to be all about Fed independence and the battle with President Trump to preserve it. The anodyne (labor market) theme of the Conference will not defuse that bomb. The issue of whether inflation concerns should outweigh those about the labor market depends on the negaitve effects of tariffs. The Fed may seek to minimise the importance of tariff effects categorizing them as "temporary" in order to curry favor with the Trump Administration by cutting rates.