Those who favor Fed Chair Jerome Powell cutting interest rates say the risk that tariffs will cause inflation is overblown, and threats to the job market are more important. Opponents say it's too soon to say inflation won't spike because of tariffs and that recent economic data show unemployment is manageable.

Traders in the federal-funds futures market were pricing in on Friday a greater chance that the Federal Reserve cuts its benchmark interest rate in September, as they assessed a softer-than-expected U.