Fed Weighs Sept. 15-16 Rate Hike as Inflation Stays Above 2% on AI Spending Boom
Updated
Updated · The New York Times · Sep 3
Fed Weighs Sept. 15-16 Rate Hike as Inflation Stays Above 2% on AI Spending Boom
3 articles · Updated · The New York Times · Sep 3
Summary
Sept. 15-16 is now a live meeting for a Fed rate increase, with officials weighing a hike if August inflation fails to keep easing.
2% remains the Fed’s target, but price pressures have stayed elevated for more than five years, reinforced by strong economic growth and a boom in AI-related spending.
Christopher Waller said the Fed is finally seeing signs of disinflation, yet he tied his vote to the Aug. CPI report due Sept. 11: steady rates if progress continues, a hike if inflation comes in hot.
Six months into the Iran war, policymakers are still grappling with its economic fallout, even as the economy has proved more resilient than many economists expected.