U.S. inflation rises in August as companies push Trump tariffs to consumers | U.S. economy

inflation Companies continue to drive costs in August, with a slight increase in August tariff To consumers.

right Consumer Price Index (CPI) measures a basket of goods and services, indicating prices have increased by 2.9% from last year, the highest since January. Core CPI, which excludes energy and food costs, remained stable after rising in July.

Despite a slight increase in inflation, Wall Street remains optimistic Fed Rates will be lowered next week at a central bank board meeting. The Fed is under great pressure Donald Trump Lower rates, but this decision seems likely to be due to concerns U.S. job market is weakening.

Investors are expected to lower the tax rate by a quarter. The current rate ranges from 4.25% to 5.5%.

U.S. stocks surged on Wednesday after tracking producer price indexes that have wholesale prices Light dipping sauce After a sharp rise in July, investors hoped that this rate of inflation would rise but slow pace in August.

The Fed has avoided lowering interest rates over the past year, citing economic instability introduced by federal immigration and trade policies. The central bank has implemented a multi-year mission to reduce inflation to a target of 2%, a level that has not been seen since early 2021. Higher interest rates help reduce costs but may slow down risks in other parts of the economy, including the labor market.

Watch closely in his speech Last month at the Fed’s Jackson Hole Workshop, Chairman Jerome Powell The recent economic environment “may require adjustments to our policy stance”, which many investors believe is a signal that the Fed will lower interest rates.

While tariffs have begun to raise prices, there is no clear outcome, the slowdown in the job market has attracted the attention of the Federal Reserve. “The downside risk of employment is rising,” Powell said.

“If these risks are achieved, they can do this quickly in the form of higher layoffs and rising unemployment rates,” Powell said.

Data released in early August plotted pictures of the labor market, as initial working numbers for May and June totaled 258,000. The White House quickly accuses the Bureau of Labor Statistics (BLS) of the gap in government agencies that collect and report employment data. But economists point out that uncertainty arising from Trump’s tariffs could lead to delays in investigation collection.

Last week, BLS revised its June figures again and increased the number of jobs in the economy Become a negative This is the first time since December 2020. The unemployment rate is also slightly 4.3%, the highest since 2021.

The Fed plans to announce any changes to the interest on September 17.