US News
LAST UPDATE: September 27, 2025
US Fed’s preferred inflation gauge rises, with more cost pressures expected
The Fed’s preferred PCE inflation measure rose to 2.7% in August, driven by tariff effects. Analysts warn of further cost pressures from Trump’s new tariff announcements.
Insight
Rising inflation above the Fed’s 2% target complicates monetary policy as tariffs create persistent price pressures beyond temporary shocks.
Fed’s Barkin: Risks to both inflation, jobs, may be limited
Richmond Fed President Barkin said risks of major unemployment or inflation spikes appear limited. He emphasized the Fed’s focus on balancing dual mandate objectives.
Insight
Barkin’s balanced view suggests moderate policy adjustments rather than dramatic rate changes in upcoming Fed meetings.
Fed’s Bowman says decisive rate cuts needed to offset labor market risks
Fed Vice-Chair Bowman argued for decisive interest rate cuts to address emerging labor market fragility. She warned the Fed risks falling behind the curve on employment concerns.
Insight
Bowman’s hawkish stance on rate cuts suggests internal Fed pressure for more aggressive policy easing to support jobs.
