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Trump Dealt Crushing Blow by Brutal Affordability Report
The Daily Beast • • business
Key Points:
- Inflation in September surged to 3.7% year-over-year, higher than the expected 3.6%, with monthly prices rising 0.6%, marking an acceleration from August's 0.4% increase.
- Rising energy costs, especially a 9.1% jump in gas prices and a 15% increase in fuel oil, were major contributors to inflation, with gas prices up over 34% compared to last year.
- Americans' wages grew only 3% annually in September, failing to keep pace with inflation for the third consecutive month, exacerbating affordability concerns ahead of the midterm elections.
- The White House defended its economic record, blaming inflation on the previous administration and external factors like the Iran conflict, while President Trump downplayed affordability issues despite the economic slowdown and weak job growth.
- The inflation report increased the likelihood of further Federal Reserve interest rate hikes, as traders responded to the data ahead of the next meeting later this month.
