Strengthening Inflation Poses Challenge for Trump, Fed

Published On Dec 11, 2024, 5:32 PM

The article discusses the recent stall in the progress of inflation reduction in the U.S., with a consumer price index (CPI) increase of 2.7% in November. Consumer goods prices rose substantially, particularly due to increased vehicle prices linked to replacements from damage caused by hurricanes. This trend poses challenges for President-elect Donald Trump, who is expected to advocate for policies that could further escalate inflation, such as tariffs. The Federal Reserve is also weighing potential impacts on interest rate policies. There's mixed sentiment among economists with some noting a cooling in housing cost increases but persistent inflation pressures in other sectors, especially services. Consumer and business confidence has risen recently, yet budget-conscious households continue to face pressures from past inflation and rising interest rates.