“Inflation, as measured by the Fed’s preferred price index, remained at 2.6 percent in July, the most recent month in which data are available. The Fed’s target is 2 percent. Moreover, in August, the consumer price index, which the Bureau of Labor Statistics uses to measure inflation, increased by 0.4 percent—the greatest monthly increase in inflation since January…
The FOMC acknowledged in its own announcement that “inflation has moved up and remains somewhat elevated” while the unemployment rate “remains low.” Increasing the fed funds rate is one of the Fed’s primary tools to combat inflationary pressures; lowering it is the opposite of what the Fed should do if it’s seriously concerned about inflation. Apparently, it’s not.”