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Markets have raced to price in three cuts this year and an additional three cuts next year after Friday's weak jobs report.

But there are important inflation reports about to print this week (CPI and PPI) and recent reports have shown higher inflation of late.

Add to previous high inflation prints that tariffs were set August 1st after some back-and-forth. So this week's prints will reflect that addition.

Until now also CPI, despite tariffs did not see the pass through of those higher prices the Fed had been worried about. But I think that was because tariffs were not set.

August 1st's setting of tariffs probably gave business leaders some more confidence to pass along prices to customers. Until tariffs were set businesses probably didn't want to flip-flop changing prices too many times to customers. So now that tariffs set they could pass along that increase to customers. That can start to show up in CPI and PPI.

So for prints this week we have tariffs setting and also probably the early stages of passing them through to customers. That would mean later month's inflation prints have further upside risk as well.

The latest in the tariff saga was that an appellate court ruled tariffs illegal but allowed tariffs to remain until October 14th. The White House quickly answered with a request to the Supreme Court to knock down the appellate verdict.

The Supreme Court probably will rule in favor of the White House's tariffs since its majority are Republican appointees. And previous Supreme Court rulings appeared to favor Republicans.

If so there's likely no let up in business leaders finally feeling comfort to pass through 'set' tariffs.

All this is to say that Friday's jobs report was only one cog in the jobs-inflation Fed focus. But this week inflation takes center stage.

If inflation continues to print high or higher, I have to believe that cut expectations that jumped last week, can come back to normal this week.

Let's see.

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