Source: The American Prospect
by Robert Kuttner
“The Consumer Price Index for September increased at an annual rate of 3.0 percent, the Labor Department reported this morning. This was an increase from 2.9 percent in August, 2.7 percent in July, and around 2.3 percent this past spring, before Trump’s perverse policies began to bite. Inflation of 3 percent doesn’t seem too bad, but it conceals a great deal of softness in the economy. That weakness will be sufficiently worrisome for the Fed to likely proceed with its planned quarter-point rate cut when the Federal Open Market Committee meets next week. But after that, both inflation and unemployment are likely to worsen, leaving the Fed with no good options. On the inflation front, Trump’s on-again, off-again tariffs have yet to fully bite, but their impact is likely to increase over time.” (10/24/25)