US EditionRising Inflation and a Deteriorating Job Market Puts the Fed and Americans in a Difficult Spot
Consumer prices rose 2.9% in August while weekly jobless claims hit 263,000, the highest in nearly four years, challenging the Federal Reserve's upcoming interest rate decisions.
- Last month, consumer inflation accelerated 0.4% from July to August, driven by jumps in gas, groceries, and airfares, the U.S. Labor Department reported.
- Facing higher import costs, businesses say President Donald Trump's tariffs pushed prices up, with Cheetie Kumar reporting a 10% cost rise and coffee and chocolate surging 300%.
- The Labor Department reported last week that weekly unemployment applications jumped 27,000, with claims rising sharply, signaling layoffs may be increasing.
- Last month, Chair Jerome Powell signaled concern about weaker hiring, the Federal Reserve faces relentless pressure from President Donald Trump who sought to fire Fed governor Lisa Cook, and CME Fedwatch shows an 85% chance of further rate cuts.
- Economists warn simultaneous rising inflation and weakening jobs raise stagflation risks, but many say the Federal Reserve's preferred inflation gauge due in about two weeks should be lower and jobless claims increase makes steady borrowing cost cuts this year more likely.
40 Articles
40 Articles
As the job market slows, inflation speeds up
The labor market has been cooling for a bit, and in some sectors is virtually frozen. That could push the Federal Reserve to cut interest rates. But the Fed’s other mandate, besides maximum employment, is price stability. And inflation is picking up. What to do, what to do…. Later in this episode: Why are utilities costs up? Are restaurants hiring when no one else is? And, should retirement accounts have access to private equity funds?Every stor…
Rising inflation and a deteriorating job market puts the Fed and Americans in a difficult spot - WSVN 7News | Miami News, Weather, Sports
WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries and airfares jumped while new data showed applications for unemployment aid soared, putting the Federal Reserve in an increasingly tough spot as it prepares to cut rates at its meeting next week despite persistent price pressures. Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Thursday, up from 2.7% the previous month and the bigge…
Rising inflation and a deteriorating job market puts the Fed, and Americans, in a difficult spot - Boston News, Weather, Sports
WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries and airfares jumped while new data showed applications for unemployment aid soared, putting the Federal Reserve in an increasingly tough spot as it prepares to cut rates at its meeting next week despite persistent price pressures. Consumer prices increased 2.9% in August from a year earlier, the Labor Department said Thursday, up from 2.7% the previous month and the bigge…
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