U.S. inflation rises in August, signaling a significant challenge for the Fed

U.S. inflation rose to 2.9% in August, highlighting the challenges facing the Federal Reserve ahead of its crucial interest rate decision next week. The Bureau of Labor Statistics' annual consumer price index, released Thursday, was up from 2.7% in July and in line with analysts' forecast of 2.9%. Core inflation remained steady at 3.1%, in line with expectations. The data comes as the Federal Reserve grapples with a sluggish labor market and political pressure from U.S. President Donald Trump to cut interest rates. Traders continue to expect the Fed to cut interest rates by 25 basis points next week, but are betting on a slightly faster pace of cuts at subsequent meetings. Fed Chairman Jerome Powell has already left the door open to a September rate cut, saying late last month that a weak job market would mitigate the risk of rising inflation from Trump's sweeping tariffs. (Jinshi)