Fed's favorite inflation thermometer just registered 'sticky'—like gum on a shoe—while Trump preps his tariff toolbox for round two. Inflation and tariffs: the ultimate tag team in the economic wrestling ring!
Hold onto your wallets, folks! The Federal Reserve's favorite inflation barometer is still throwing a high-society party, and it doesn’t look like it’s leaving anytime soon. According to the Commerce Department (released just in time for your Friday happy hour), inflation was still hanging around at 2.7% this August, just a smidge up from its chilled-out 2.6% vibe from June. Why is this important, you ask? Well, thanks to some fancy trade antics (courtesy of our commander-in-chief, Mr. Trump), getting inflation back into a cozy normal range is going to be as tricky as finding a parking spot at the beach in July. Meanwhile, the core index—let’s call it inflation’s “no-nonsense cousin,” which ignores the drama of food and energy prices—stayed consistent at a nifty 2.9%. In a nutshell: Prices rose 0.3% in August, tapping into their inner “spicy” flair, while the core gauge took a slight breath with a 0.2% increase. So, while inflation might still be sobbing in the corner ...