Inflation Is Still Rising Yet Fed Cuts Are Deemed To Be Certain

[gab13by13]

Too much pressure on Powell, wouldn't be surprised if he cut rates 0.5%

2.9%
The CPI data for August 2025 indicates that the Consumer Price Index rose by 0.2% compared to the previous month, with a year-over-year increase of 2.9%. This data was released on September 11, 2025, and reflects a slight decrease from the previous month's inflation rate of 2.7%. The CPI is a key indicator of inflation in the U.S., tracking the average change in prices paid by urban consumers for a market basket of goods and services.
U.S. Bureau of Labor Statistics

[Johnny2X2X]

1. It's risky

Trump has done so much damage to our economy in just 8 months that it’s between a rock and a hard place. Unemployment is soaring, so the thought might be that inflation will ease because people have so much less money to spend.

[gab13by13]

3. Remember when Biden was president? Yeah, different times but...

Powell was adamant for keeping inflation at 2.0 or less before cutting rates, now it appears the standard is 3.0 or less.

[Johnny2X2X]

6. They were browbeaten into this decision

And they'll get blamed no matter what, so they should have just stuck to their principles. And it's the direction of inflation that's more important than it's level, inflation is rising. And 0.4% last month translates to a trend of almost 5% year over year.

Joe Biden did more for working people than any president in 60 years, Trump is absolutely crushing the working class and it's going to get scary and ugly.

[Fiendish Thingy]

9. Math check:

How does last month’s rate of 0.4% translate into 5% YOY, but this month’s 0.2% increase translate into 2.9% YOY?

If accurate, then inflation is decreasing, not increasing, and would lend justification to a Fed decision to cut.

[Johnny2X2X]

11. It was 0.4, last month was 0.2.

"Month over month, prices rose 0.4%, "

https://finance.yahoo.com/news/inflation-ticks-up-in-august-complicating-feds-rate-cut-path-123157122.html

[Fiendish Thingy]

12. You should edit your post

Your post that I originally replied to says “last month was 0.4”

The way I read that in the context of the OP was “the previous month” compared to the most recent numbers released today.

[Johnny2X2X]

13. Pedantic

This month's report is for last month's data, last month's report was for July's data.

So last month is was 0.4 and 2 months ago it was 0.2. We won't know about this month until October.

[Fiendish Thingy]

14. Then the OP is in error

The OP states the rate for August was 0.2%, and you state it is 0.4%, so somebody is wrong.

Not pedantic at all.

[Johnny2X2X]

15. Op is wrong

https://www.bls.gov/news.release/cpi.nr0.htm

"The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in
August, after rising 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,
the all items index increased 2.9 percent before seasonal adjustment."

[Fiendish Thingy]

16. So my confusion makes sense now. Nt

[Johnny2X2X]

17. Yeah

0.2% would have been seen positively. The 0.4% number is the biggest we've seen this year.

[Johonny]

5. Yes, the FED must chose between jobs or inflation

Because they cannot control the other inflationary pressures from the White House.

Trump wants lower rates to inflate the stock market, which is all ready feeling inflated. At some point . . .

A lot of people are counting on the courts limiting Trump's tariff powers to get out of this. But we will see about that.

[dalton99a]

2. Trump's economic plan is to raise prices and lay off people

[gab13by13]

4. I honestly believe that Krasnov's economic plan is twofold,

1. Tax cuts for rich, transfer of wealth from the poor to the rich. Done.
2. Crater the dollar and boost crypto. Krasnov has already made billions from crypto. Cutting interest rates should cause higher inflation but who knows, maybe we should be talking about deflation?

[Walleye]

7. I think those are both absolutely correct

[Bernardo de La Paz]

8. Initial job claims are rising, comp equal to 2023, have to go to 2021 to get a higher figure. . . . nt

[Ilsa]

10. I'm guessing 25 basis points. nt