ECONOMY

Inflation Rises as Fed Cuts, Tariffs Bite

Inflation has edged up in three of the past four months, reaching 2.9% in August, even as President Donald Trump says “inflation has been defeated” and the Fed cuts rates. Economists warn that tariffs and still-rising everyday costs — from groceries to coffee — risk keeping prices elevated and eroding the Fed’s credibility if its bet on a temporary bump proves wrong. New tariffs, spanning pharmaceuticals to heavy trucks, are prompting companies to raise prices, while some Fed officials remain wary and others more sanguine. The September inflation report, due Wednesday, will likely be delayed by the government shutdown.

Reviewed by JQJO team

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