A slowdown in inflation last month, following recent indications of a robust labor market, complicates the Federal Reserve's decision on how much to raise interest rates next month.
Data on inflation and economic activity are likely to guide whether central bank officials lift their benchmark federal-funds rate by a half-percentage point or three-quarters of a point at their Sept. 20-21 policy meeting. They have said they want to see evidence that price pressures and economic growth are cooling before they moderate their pace of rate increases.
Fed's Inflation Battle Is Far From Won
Markets rallied Wednesday as data showed inflation cooling in July, but it isn't time for investors to relax just yet: Price conditions remain uncomfortably hot.
The consumer-price index rose 8.5% from a year earlier, the Labor Department said Wednesday, slowing from June's 9.1% pace and a bit below expectations. This was thanks largely to declining gasoline prices. According to AAA, the national average price for regular unleaded gasoline is now $4.01 a gallon, down from $4.68 a month ago. Gasoline futures have declined by even more, suggesting further retail price cuts ahead.
Lower Gasoline Prices Portend Higher Consumer Confidence, Affect Inflation
Consumers are likely to travel and spend more because U.S. national gasoline prices have fallen for weeks, economists said, delivering an expected boost to the economy.
The average cost of a gallon of regular unleaded gasoline fell below $4 on Wednesday, according to energy data provider OPIS. That is well below the record high of $5.02 reached in mid-June but still about 80 cents a gallon higher than prices were a year ago.
FBI's Trump Search Stirs Talk, Except by Those Who Conducted It
The FBI search of former President Donald Trump's Mar-a-Lago home Monday was unprecedented, prompting days of global news coverage and commentary on motivations, implications and ramifications.
Key players no one has heard from: the Justice Department or the Federal Bureau of Investigation.
John Bolton Was Target of Assassination Plot by Iranian National
An Iranian national plotted to assassinate at least two former Trump administration officials, the Department of Justice said, in what it described as a likely retaliation for the 2020 killing of a prominent Iranian general.
A criminal complaint unsealed Wednesday said Shahram Poursafi, 45 years old, of Tehran, tried to kill one of former President Donald Trump's national-security advisers, John Bolton, by offering to pay an individual in the U.S. $300,000. Agents affiliated with Mr. Poursafi conducted surveillance on Mr. Bolton.
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(END) Dow Jones Newswires
08-11-22 0602ET
