INFLATION

The enormous cost of building the infrastructure needed to power it may be adding to inflation before those promised productivity gains arrive.

Stocks rose on Wednesday after a tame inflation report, which reinforced bets that the Federal Reserve will keep rates unchanged in its next meeting.

Expectations that the Fed will hold interest rates unchanged in its September meeting increased on Wednesday after the July inflation rate was in line with estimates.

Headline and core inflation rose in line with expectations in July, according to data released by the Bureau of Labor Statistics on Wednesday.

The Dow Jones consensus forecast calls for headline CPI to rise 0.1% from June, while core CPI, which excludes volatile food and energy prices, is expected to increase 0.2%.

Cleveland Federal Reserve president Beth Hammack said more than one interest rate hike could be needed to tame inflation.

Ashok Varadhan's case rests on the Federal Reserve keeping interest rates unchanged through the rest of 2026, oil prices falling significantly, and the economy remaining resilient as artificial intelligence begins delivering productivity gains.

The Fed has held its benchmark interest rate steady throughout 2026 as policymakers weigh persistent inflation against signs that the labor market and broader economy are losing momentum.

Private employers added just 44,000 jobs in July, marking the weakest monthly gain since January and reinforcing concerns that businesses are becoming more cautious about expanding their workforces.

Federal Reserve Governor Lisa Cook said that even though she voted against hiking interest rates, she is ready to do so if inflation does not decrease.

A survey of 30,000 Americans across income groups showed that 90% of respondents identified groceries and food prices as one of their biggest financial worries.

Kevin Warsh's proposal to hold fewer meetings would cut the Fed's current schedule of eight policy meetings per year to six, while adding two separate meetings dedicated to broader economic issues rather than interest rate decisions.

Philadelphia Fed President Anna Paulson said she believes the current level of interest rates is enough to drive inflation back to the central bank's goal.

Strong investment returns, rising home values and years of economic growth have helped millions of Americans cross the $1 million threshold, even as inflation has reduced the purchasing power of that milestone figure.

John Williams, the chair of New York's Federal Reserve, said he expects inflation to ease gradually, but the central bank will raise interest rates if that does not happen alone.

Data released for June showed that several "trimmed mean" inflation gauges fell to their lowest levels since the early years of the inflation surge that followed the pandemic.

CEOs face a public worried about affordability and increasingly skeptical that the American dream is achievable.

Iranian citizens' day-to-day has been impacted further after the Trump administration widened its list of military targets beyond conventional defense sites to include infrastructure considered vital to the country's economy.

U.S. oil and gas companies have seen profits soar, largely a result from disruptions related to the Iran war.

The U.S. economy grew 1.5% in the second quarter, less than expected. Inflation stood at 3.3%, in line with estimations.

US households are battling what is considered the biggest jump in grocery prices in half a century. In other terms, purchasing food to eat at home has become 33% more expensive in US cities since the beginning of 2019.