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Inflation rose to 2.9% in August, exceeding the Fed’s target, driven by tariffs and supply issues, despite rate cuts and claims of control.
Inflation rose to 2.9% in August, above the Federal Reserve’s 2% target, despite claims by President Trump and Fed Chair Powell that inflation has been tamed.
Prices for groceries, coffee, furniture, and appliances continue to climb, driven by new tariffs and supply issues, with coffee up nearly 21%.
The Fed cut interest rates, citing reduced risks, but economists warn the move may be premature if inflation proves persistent, threatening the central bank’s credibility and risking wage-price spirals.
The September inflation report is delayed due to a government shutdown, leaving uncertainty about the economic outlook.
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La inflación subió al 2,9% en agosto, superando el objetivo de la Fed, impulsada por aranceles y problemas de suministro, a pesar de los recortes de tasas y las reclamaciones de control.