Inflation Rises Again As Trump Declares It 'Defeated'

Benzinga

U.S. inflation rose 2.9% in August, topping the Fed’s 2% target despite Trump and Powell declaring it subdued. Economists warn new tariffs and premature rate cuts could reignite price pressures and erode Fed credibility.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Inflation has increased in three of the past four months, Target, even as Trump and Fed

00:07officials declare it subdued, according to AP. Trump told the UN that inflation has been defeated,

00:13while Fed chair Jerome Powell said price risks have diminished ahead of the central bank's

00:19first rate cut of the year. Inflation remains well below its 9.1% peak three years ago,

00:24but rose 2.9% in August from a year earlier, exceeding the Fed's 2% target despite tariffs

00:30having less impact than expected. Economists warn that dismissing persistent price growth

00:36could undermine the Fed's credibility and voter confidence, particularly as tariffs drive up

00:41costs for goods like furniture, appliances, and coffee. Peterson Institute economist Karen

00:46Dynan said the Fed's recent cuts are going to be seen as a mistake if inflation remains elevated.

00:52New tariffs on products, including pharmaceuticals, trucks, and cabinets could fuel further price

00:58hikes, with companies already raising prices to offset costs. For all things money, visit Benzinga.com.

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