this Fed This month faces huge tests as it weighs the president’s economic situation trump cardinflation is higher than the required calories, but the working conditions deteriorate and the tax rate is almost required.
Prices rose 0.4% in August and 2.9% annually, the federal government said Thursday. Although inflation is accelerating, it still lacks the fear of apocalypse.
Unemployed people claimed to soar to 263,000 in the week ending September 6, the highest number in nearly four years.
This situation will force Fed To overcome long-term concerns about inflation caused by tariffs and lower interest rates, we can start the economy at the meeting next week, as Mr. trump card Request from day 1.
Rate adjustments are indeed risky.
“this Fed “Inflation is still above the 2% target and is heading in the wrong direction. The job market is also weak. These trends suggest that stagnation is a growing risk, which is especially disturbing for the economy.”
In view of this situation, he said: “It is possible to propose lower interest rates and maintain a stable attitude.”
Death is likely to be cast. CME FedWatch cuts 25 benchmarks by 93% on Thursday.
Central bankers expect to lower the tax rate at least twice this year, but fail to do so, increasing the likelihood that they will take action this time.
The Bureau of Labor Statistics said the consumer price index in August was only slightly higher than Wall Street’s estimate of 0.3%. Core inflation, subtracting energy and food prices, showed a monthly gain of 0.3%, up 3.1%, which matched the forecast.
The Bureau of Labor Statistics said that rising coffee and beef prices and rising housing prices are the main factors in the overall rise. The healthcare, entertainment and communication index is “one of the few major indexes that fell in August”.
Stocks soared after investors bet on CPI report Fed Expected to lower the rates.
“No doubt, Fed “Lower interest rates will at least make the housing market better, which is needed, and it is necessary,” said Kishore Kulkarni, Distinguished Economics Professor at Metropolitan State University in Denver.
The White House says Fed Action should be taken as soon as possible to enable borrowers to better terms and relax their tariffs, deregulation and tax cuts on their economic agenda.
White House press secretary Karoline Leavitt said the CPI was 2.3%, “consistent with low and stable inflation.”
“As Trump’s economic agenda continues to take effect, trillions of dollars in private sector and foreign investment, historic tax cuts, massive deregulation and energy dominance, the president has taken the lead in improving economic prosperity,” Ms Levitt said. “The president” trump card It’s always right: Jerome “too late” Powell’s lowering rate has passed. ”
this Fed Reluctant to lower the rates because it is concerned about Mr. inflationary pressure Trump’s Trade agenda.
He imposed a 10% blanket duty on all imported goods earlier this year.
By the end of the summer, the president imposed 15% to 41% tariffs on more than 67 countries, raising its highest level in more than a century.
He is also negotiating a 15% interest rate with the EU, Japan and South Korea.
gentlemen. trump card He said his approach would force companies to produce products in the United States and bring billions of dollars in revenue to the U.S. government.
But some economists worry that businesses start to transfer tariff costs to everyday Americans.
Heather Long, chief economist at Naval Federal Credit Union, said inflation in August reached 2.9%, or “highest since January, up from 2.3% in April.”
“The middle class squeeze of tariffs is here. It’s disturbing that many basic necessities are rising again: the cost of food, gasoline, clothing and shelter in August has increased dramatically.”
Rep. Brendan Boyle, of Pennsylvania, is the highest-ranked Democrat on the House Budget Committee, called Mr. trump card “fraud”.
“He promised to lower prices, but his reckless policies kept pushing them higher,” Boyle said. “The only promise he kept was his billionaire partner. Everyone else paid the price.”
The economist says Fed It is almost guaranteed at this point, so it is a question of how far the central bank goes in balancing stable prices and highest employment.
“The risk of lowering interest rates is that inflation will start to accelerate again, and in my personal judgment, I believe this is a greater risk,” Mr Winegarden said. “The smaller cuts will not significantly increase these risks, but aggressive cuts take a great risk that inflation will heat up.”
Others say Fed The rates should be greatly reduced to start the US renaissance.
The producer’s price index showed that wholesale prices fell 0.1% in August, beating Wall Street’s forecast.
Alfredo Ortiz, CEO of Job Seeker Network, said wholesale prices in August will pass in the coming weeks, resulting in lower consumer prices.
“The bigger concern is artificially high interest rates that prevent small businesses from expanding and ordinary people from getting affordable mortgages,” he said.
Central bankers pay special attention to deteriorating work conditions.
The U.S. added 22,000 jobs in August, a slowdown in July of the 79,000 jobs added.
Earlier this week, the Bureau of Labor Statistics dropped its total jobs created by 911,000 in the 12 months to March, indicating a slowdown ahead of Mr. Trump’s inauguration and the enactment of a large number of tariffs.
Despite these headwinds, the economy has proven resilient, partly because technological advances have enhanced production, Mr. Kulkani said.
He said sir trump card In the long run, it is impossible to keep high tariffs in Brazil and India at high prices in Brazil and India as the levy appears to be a negotiation tool. This should relieve some inflationary pressure on the economy.
“We’re knocking on the door [on the door of] He said it was a more difficult time. But we are not there yet. ”
