US Inflation Pressures Fed
August inflation stayed high, keeping pressure on the Fed to consider another rate hike.
5 left16 center7 right
Updated Sep 11, 6:58pm ETEvery side, every morning
A free recap of the day’s biggest stories and how each side covered them.
The reporting
U.S. consumer prices rose 3.4% in August from a year earlier, unchanged from July, while the Consumer Price Index increased 0.4% from July as gasoline and other energy costs kept pressure on household budgets. The Sept. 11 report strengthened market expectations that Fed Chair Kevin Warsh and policymakers will raise interest rates next week, with fed-funds futures pricing odds at about 86%, up from about 72% a day earlier. Treasury yields stayed near multiyear highs, while U.S. stocks rebounded as oil prices eased, with the Dow up about 500 points.
Analysis & opinion
Fed hike caseMostly Left
August’s inflation data makes looser monetary policy harder to justify and strengthens the case for the Federal Reserve to keep rates high or raise them again. Persistent price pressures, especially alongside strong jobs data, make another rate hike a real possibility.
Consumer squeezeLeft & Center
Households are likely to feel more financial strain in the near term as inflation remains stubborn. Rising energy costs and broader price pressures could make conditions worse for consumers in September and beyond.
Also today
All of today's stories →- 1Balanced64articles
- 2Balanced42articles
- 3Balanced38articles
- 4Riyadh Airport Attack Kills 12Left & CenterLeft & Center36articles
- 5Balanced34articles
- 6Balanced32articles