Background: The Fed decides to raise interest rates by another 0.25 percentage points in October
U.S. inflation: Headline CPI in August was around 3.7%, core PCE at 3.4%, higher than the previous forecast. The Fed expects inflation to return to the 2% target level in 2029.
Labor market: The unemployment rate stays at 4.1%, while the number of new jobs increases strongly, indicating the economy can withstand higher interest rates.
Energy pressure: Oil and energy prices rise due to conflicts in the Middle East and fighting with Iran, increasing the risk of a “second-round effect” on transportation costs, goods, and services.
#TinFed
U.S. inflation: Headline CPI in August was around 3.7%, core PCE at 3.4%, higher than the previous forecast. The Fed expects inflation to return to the 2% target level in 2029.
Labor market: The unemployment rate stays at 4.1%, while the number of new jobs increases strongly, indicating the economy can withstand higher interest rates.
Energy pressure: Oil and energy prices rise due to conflicts in the Middle East and fighting with Iran, increasing the risk of a “second-round effect” on transportation costs, goods, and services.
#TinFed
