{"id":19619,"date":"2025-09-23T16:43:06","date_gmt":"2025-09-23T16:43:06","guid":{"rendered":"https:\/\/lonecandle.com\/?p=19619"},"modified":"2025-09-23T16:43:07","modified_gmt":"2025-09-23T16:43:07","slug":"the-federal-reserve-cuts-rates-with-inflation-still-hot-is-political-pressure-winning","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=19619","title":{"rendered":"The Federal Reserve Cuts Rates With Inflation Still Hot. Is Political Pressure Winning?"},"content":{"rendered":"\n<p>&#8220;Inflation, as measured by the&nbsp;<a href=\"https:\/\/www.bea.gov\/data\/personal-consumption-expenditures-price-index\" target=\"_blank\" rel=\"noreferrer noopener\">Fed&#8217;s preferred price index<\/a>, remained at 2.6 percent in July, the most recent month in which data are available. The Fed&#8217;s&nbsp;<a href=\"https:\/\/www.federalreserve.gov\/faqs\/economy_14400.htm\" target=\"_blank\" rel=\"noreferrer noopener\">target<\/a>&nbsp;is 2 percent. Moreover, in August, the&nbsp;<a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">consumer price index<\/a>, which the Bureau of Labor Statistics uses to measure inflation, increased by 0.4 percent\u2014the greatest monthly increase in inflation since January&#8230;<\/p>\n\n\n\n<p>The FOMC acknowledged in its own announcement that &#8220;inflation has moved up and remains somewhat elevated&#8221; while the unemployment rate &#8220;remains low.&#8221; Increasing the fed funds rate is one of the Fed&#8217;s primary tools to combat inflationary pressures; lowering it is&nbsp;<em>the opposite<\/em>&nbsp;of what the Fed should do if it&#8217;s seriously concerned about inflation. Apparently, it&#8217;s not.&#8221;&nbsp;&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/reason.com\/2025\/09\/18\/the-federal-reserve-cuts-rates-with-inflation-still-hot-is-political-pressure-winning\">https:\/\/reason.com\/2025\/09\/18\/the-federal-reserve-cuts-rates-with-inflation-still-hot-is-political-pressure-winning<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Inflation, as measured by the Fed&#8217;s preferred price index, remained at 2.6 percent in July, the most recent month in which data are available. The Fed&#8217;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\u2014the greatest monthly increase in inflation since January&#8230;<\/p>\n<p>The FOMC acknowledged in its own announcement that &#8220;inflation has moved up and remains somewhat elevated&#8221; while the unemployment rate &#8220;remains low.&#8221; Increasing the fed funds rate is one of the Fed&#8217;s primary tools to combat inflationary pressures; lowering it is the opposite of what the Fed should do if it&#8217;s seriously concerned about inflation. Apparently, it&#8217;s not.&#8221;  <\/p>\n<p>https:\/\/reason.com\/2025\/09\/18\/the-federal-reserve-cuts-rates-with-inflation-still-hot-is-political-pressure-winning\/<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[217,165,1316,682,1407,586,587],"class_list":["post-19619","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-economics","tag-economy","tag-inflation","tag-interest","tag-prices","tag-the-fed","tag-the-federal-reserve"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19619"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19619\/revisions"}],"predecessor-version":[{"id":19620,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19619\/revisions\/19620"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}