Inflation continues to decrease, with consumer price growth slowing to 2.5% in August, the lowest measure since 2021. Despite being close to the Federal Reserve’s 2% target, the effects of rapid price increases in recent years are still felt by consumers. Inflation was a focus in the presidential debate, with Donald Trump blaming the Biden Administration for price increases. Housing costs are a significant concern, with rents up 25% on average since the start of the pandemic. Evictions are on the rise in some cities, while mortgage delinquencies have also increased. The Federal Reserve is expected to cut interest rates by 0.25% to help mitigate economic challenges, but some experts believe it may not be enough. While some economists believe in a “soft landing” for the economy, others are wary of a “hard landing” due to weak job data. Investors will be closely watching Fed Chair Jerome Powell’s remarks for insight into the central bank’s future plans.
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