{"id":2081099,"date":"2023-10-27T08:55:05","date_gmt":"2023-10-27T12:55:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge\/"},"modified":"2023-10-27T08:56:46","modified_gmt":"2023-10-27T12:56:46","slug":"inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge\/","title":{"rendered":"September inflation remains stable at 3.4% in Fed&#8217;s preferred measure."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2081099&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Inflation \u2062Holds Steady at\u200b 3.4% as Fed Works to Tame Rising Prices<\/h2>\n<p>In September, inflation remained at a 3.4% annual rate,\u2064 according \u2062to the\u2063 preferred gauge of the Federal Reserve. This is good news for the Fed as it strives to combat inflation by raising \u2063interest rates.\u200d The latest report from the Bureau of Economic Analysis, released on Friday, aligns with expectations.<\/p>\n<p>While inflation is still above the \u200dFed&#8217;s\u2064 target of 2%\u2062 annual price growth, the fact that it\u2064 did not increase\u200c further \u200dindicates some progress. This is a \u2062positive development for \u200dthe Biden administration, \u2063which has been highlighting favorable economic indicators, such as low unemployment and strong economic growth, as evidence of the\u2062 success\u200c of its economic agenda.<\/p>\n<h3>Core PCE Inflation Falls to 3.7%<\/h3>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/4-lies-youve-been-told-about-bidens-new-budget-proposal\/\" title=\"4 Lies You\u2019ve Been Told About Biden\u2019s New Budget Proposal\">core personal consumption expenditures<\/a> (PCE) inflation, which\u2062 excludes volatile energy and food prices, dropped to a 3.7% year-over-year rate.<\/p>\n<h2>Economic\u2064 Growth Surges Despite High Interest Rates<\/h2>\n<p>Despite the Fed&#8217;s restrictive monetary policy, other economic indicators have remained surprisingly strong.\u2064 For example,\u200b gross domestic product (GDP) growth has not only stayed\u200c positive but has even accelerated. The \u200dlatest GDP report reveals a \u200crobust 4.9% seasonally adjusted annual \u200brate in the third quarter, up from 2.1% in the previous quarter.<\/p>\n<p>The labor market is also performing well, with an \u200dadditional 336,000 jobs added in September. Furthermore, employment gains in July and August were revised upward by \u200ba combined \u200c119,000.<\/p>\n<p>These positive GDP growth and labor market trends give the Fed more flexibility\u200d in\u200c its tightening agenda. However, economists anticipate a slowdown in GDP growth and weakening of the labor market as the central bank maintains interest\u2064 rates at multi-decade \u2062highs.<\/p>\n<h3>Fed Likely to Pause Rate Hikes<\/h3>\n<p>Most\u2063 investors now believe \u2062that the Fed will refrain from raising interest rates again before the\u2063 end\u200d of the year. \u200dFed officials are adopting a wait-and-see approach \u2063to future tightening, with Chairman Jerome Powell signaling that \u2064rates will not be\u200b raised at \u2062the upcoming meeting.<\/p>\n<p>While\u200d the central bank is expected to \u200dbe done \u200cwith\u2062 rate hikes, it \u200dis likely to keep interest rates at their elevated level for\u2062 a longer duration than previously anticipated.<\/p>\n<h2>Consumers Feel the Impact of Higher Rates<\/h2>\n<p>Although higher interest rates have not\u200d yet dampened GDP growth\u200b and \u2062the labor market, they have \u2062caused difficulties for consumers. The housing market,\u200d in particular, has been significantly affected, with <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-holds-steady-at-3-4-in-september-in-feds-preferred-gauge\/\" title=\"September inflation remains stable at 3.4% in Fed's preferred measure.\">mortgage rates reaching multi-decade highs due<\/a> to the \u200cFed&#8217;s tight monetary policy.<\/p>\n<p>As of Thursday, the average rate on\u200b a \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-pauses-interest-rate-hikes-after-a-year-of-increases\/\" title=\"Fed halts rate hikes after one year of increases.\">30-year fixed-rate mortgage stood<\/a> at 7.9%, with rates peaking at 8.02% last week. This is the first time rates have surpassed 8% since 2000.<\/p>\n<p>In addition to making home purchases more expensive, the\u200d Fed&#8217;s tight monetary policy has also \u2062increased the burden of paying off \u2063credit card debt and other\u2064 interest-rate sensitive\u2062 obligations.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> How can policymakers effectively navigate challenges such as inflationary pressures, higher \u2064interest rates, and supply chain disruptions to\u200d ensure sustained\u2062 economic\u200c growth and stability<\/h2>\n<p><span>  E economy grew at a robust 6.7% annualized rate in the second quarter\u200d of 2021, surpassing \u200cexpectations and demonstrating resilience despite the challenges posed by the COVID-19 pandemic.<\/p>\n<p>The strong economic growth can \u2064be attributed\u2063 to a \u200cnumber \u2063of factors. Consumer spending, \u2063which accounts for \u2064a major portion of economic activity, has remained robust. Stimulus measures such\u200c as direct payments to individuals and increased unemployment \u2062benefits have bolstered household incomes and supported spending. Additionally, the reopening of businesses and easing of \u2063restrictions have spurred\u2064 increased economic activity.<\/p>\n<p>Business\u200d investment has also been a key driver of\u2064 economic \u2064growth.\u200c Companies have been making capital investments to expand production capacity and modernize their \u200boperations. This reflects business\u2063 confidence in the economic recovery and outlook for the future.<\/p>\n<p>Furthermore, the housing market has remained \u200bstrong, with low mortgage rates and\u2063 high demand driving a surge in home sales and construction activity. This has provided a boost to economic growth\u2063 through\u200c increased spending on housing-related goods and services.<\/p>\n<h3>Challenges Ahead for the Economy<\/h3>\n<p>Despite \u200dthe positive economic indicators, there are \u2064challenges that need to be addressed. Rising inflationary pressures continue to be a concern. Higher prices for\u2064 goods and services can erode purchasing power and reduce consumer spending. Moreover, businesses may face higher input costs,\u200d which could impact profitability and \u2062potentially lead to job losses.<\/p>\n<p>In response to the persistent inflationary pressures, the\u200d Federal \u200bReserve has signaled its intention to gradually tighten monetary policy by raising interest rates. While higher interest rates can help curb inflation, they can also dampen economic activity by increasing borrowing costs for businesses and consumers. It will be important for the Fed to strike\u2064 the right balance and carefully manage the pace of interest rate\u200c hikes to \u200bavoid derailing the economic recovery.<\/p>\n<p>Another challenge that the economy faces is the ongoing supply \u2062chain \u200bdisruptions and labor shortages. These issues have contributed to higher prices and bottlenecks in various sectors, including manufacturing and transportation. Addressing these challenges will require not only short-term measures, such as increasing production capacity and expanding\u200d the labor \u200cforce, \u200cbut also long-term\u200b strategies to enhance \u2063supply chain resiliency and improve workforce skills.<\/p>\n<h2>Conclusion<\/h2>\n<p>The steady\u200b inflation rate of 3.4% in September indicates some progress in the Federal Reserve&#8217;s efforts \u200cto tame \u200drising prices. This is positive news for the Biden administration, which has been highlighting the success of its economic agenda. However, challenges such as inflationary pressures,\u200d higher interest rates, and supply chain disruptions remain. It will be \u200ccrucial for policymakers to navigate these challenges\u200c effectively to ensure sustained economic growth and stability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In September, inflation remained stable at 3.4% annually, according to the Federal Reserve&#8217;s preferred gauge. The revised August report for the personal consumption expenditures price index showed a slight decrease, resulting in no change in annual inflation for September. The Bureau of Economic reported the latest PCE numbers on Friday morning.<\/p>\n","protected":false},"author":1,"featured_media":2081101,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2081099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2081099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2081099"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2081099\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2081101"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2081099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2081099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2081099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}