Consumer prices rose 0.4 percent in August and 2.9 percent over twelve months. The reading arrived as hiring data had become visibly weaker.
The dual mandate pulled both ways
Higher inflation argued for caution, while weaker employment increased the cost of waiting.
Shelter remained influential
Housing carries a large index weight and tends to change more slowly than market headlines.
One report did not choose the policy
Officials considered a collection of prices, wages, jobs, and financial conditions.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index, August 2025.