US Inflation Rise Complicates Trump's Midterm Outlook

aftenposten.no (Swedish) —

US inflation rose to 3.7 percent in September, slightly above forecasts, increasing the likelihood of a Federal Reserve rate hike just days before the midterm elections, a development seen as bad news for President Donald Trump. Market-based probability of a rate increase at the next Fed meeting jumped from 21 percent to over 50 percent after the data release. Trump's tariffs have raised consumer prices by 2.9 percentage points, according to a New York Fed study, with Fed Chair Kevin Warsh expected to ignore potential presidential attacks.


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