Inflation has just hit its highest level in a year, and it c
Tom Tucker
Updated at: 3 hours ago
{"content":"Inflation has just hit its highest level in a year, and it could spell trouble for Powell.
ABC News reports that U.S. inflation jumped to 3.1%, the highest since last year, right after the Fed’s first rate cut. What was meant to support the job market may now be backfiring. Prices are rising, hiring is slowing, and the word “stagflation” is starting to return, a mix of higher costs and weaker growth.
The Fed now faces a tough choice.
If they cut rates again, inflation could accelerate.
If they hold steady, unemployment may rise faster.
Housing and food costs are driving most of the increase, putting pressure on households while wages fail to keep up. For Wall Street, that means more volatility ahead.
Powell’s plan to slow the economy without causing a downturn just became much more difficult. The next CPI report and Fed meeting will be crucial for markets, jobs, and even the political narrative heading into 2025.
Inflation is back, and the question now is whether the Fed can still control it.
#CPIWatch | #MarketRebound | #PowellPower | #Inflation
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