U.S. consumer prices rose less than expected in September, suggesting that inflation pressures are easing. The Consumer Price Index increased only 0.2%, while core inflation held steady at 3.1% year over year. This slowdown could give the Federal Reserve room to begin lowering interest rates, providing some relief to borrowers and stabilizing markets strained by high costs.
However, the ongoing government shutdown is creating uncertainty by disrupting key data collection. Without full access to reports from agencies such as the Bureau of Labor Statistics, policymakers may struggle to gauge the actual state of the economy. This leaves the Fed in a difficult position, balancing progress on inflation with the risks of acting without complete information.
Article: US consumer inflation cools in September; government shutdown threatens next report By Lucia Mutikani
Link: https://www.reuters.com/world/us/us-consumer-prices-rise-slightly-less-than-expected-september-2025-10-24/?utm_source=chatgpt.com
1 comment:
This government shutdown has really put a lot of pressure on the FED. They are in a situation where they have less to work with, due to certain programs being closed, yet still have to manage the entire economy with rising pressure for change. I am interested to see how things are in the future if this shutdown continues. I'm also curious if there is an end in sight, and if there is, what are we going to see?
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