Internewscast Journal
  • Home
  • US News
  • Local News
  • Health
  • People
  • Guest Post
  • Support Our Cause
Internewscast Journal
  • Home
  • US News
  • Local News
  • Health
  • People
  • Guest Post
  • Support Our Cause
Home Local news Inflation vs. Employment: Federal Reserve Officials Debate Priorities
  • Local news

Inflation vs. Employment: Federal Reserve Officials Debate Priorities

    Inflation or jobs: Federal Reserve officials are divided over competing concerns
    Up next
    States battling 'bone-breaking' virus brought in from Asia and Africa
    U.S. States Confronting a ‘Bone-Breaking’ Virus Imported from Asia and Africa
    Published on 14 August 2025
    Author
    Internewscast
    Tags
    • Alberto Musalem,
    • ARE,
    • Business,
    • competing,
    • concerns,
    • divided,
    • Donald Trump,
    • Federal,
    • inflation,
    • Jobs,
    • Mary Daly,
    • Michelle Bowman,
    • officials,
    • over,
    • Raphael Bostic,
    • Reserve,
    • Scott Bessent,
    • Tim Duy,
    • U.S. news
    Share this @internewscast.com
    FacebookXRedditPinterest

    WASHINGTON – As the Federal Reserve prepares for its annual conference in Jackson, Wyoming, and a significant policy meeting in September, a crucial question looms bright: Is persistent inflation or the deceleration in hiring the larger economic concern right now?

    Since April, lackluster job growth has inclined some officials to favor a potential rate cut by next month. However, numerous speeches and statements from other Fed policymakers highlight that inflation remains a significant issue.

    This divergence in views could make the Fed’s decision during the September 16-17 meeting a tough one. Upcoming reports on employment and inflation, due before the meeting, will be pivotal in shaping the decision to either cut rates or maintain the current stance. Consequently, Fed Chair Jerome Powell’s address on Friday in Jackson will be scrutinized for insights on possible future actions.

    If Fed officials express greater apprehension about the potential rise in unemployment and a weakening economy, they might consider lowering the rate to reduce borrowing costs and stimulate economic activity. Conversely, if concerns about high or escalating inflation prevail, especially with tariffs impacting global supply chains, they may favor maintaining higher rates to temper the economy and manage prices. Presently, the rate is at 4.3%.

    Currently, Wall Street investors are largely convinced that a rate cut will occur in September. According to CME Fedwatch, futures prices indicate a 93% probability of a decrease.

    These probabilities climbed sharply following the August 1 monthly employment report, which revealed that July’s job growth was underwhelming, with revisions showing significantly lower figures for May and June. Over the past three months, average job gains plummeted to merely 35,000, a stark drop from 123,000 a year earlier.

    And Tuesday’s inflation report, which showed only a mild pickup in inflation at the consumer level and limited signs that tariffs were pushing goods prices higher, underscored the view of some officials that they could put inflation concerns aside and focus on shoring up the job market instead.

    “With underlying inflation on a sustained trajectory toward 2%, softness in aggregate demand, and signs of fragility in the labor market, I think that we should focus on risks to our employment mandate,” Michelle Bowman, a member of the Fed’s governing board, said last week.

    Yet Austan Goolsbee, president of the Federal Reserve’s Chicago branch, downplayed the weakness in hiring in remarks to reporters Wednesday. The slowdown in job gains could partly reflect the drop in immigration stemming from President Donald Trump’s border crackdown, Goolsbee said, rather than a weaker economy. He also pointed to the still-low unemployment rate of 4.2% as evidence that the job market is solid.

    This week’s inflation report included some warning signs, Goolsbee added: Prices of many services that aren’t affected by tariffs, such as dental care and air fares, jumped, a sign that inflation may not be in check.

    “That was the most concerning thing in the inflation report, and if that persisted, we would have a hard time getting back to 2%,” Goolsbee said, referring to the central bank’s inflation goal. “I am still hopeful that will not be a lasting problem.”

    Fed officials also disagree on how tariffs will affect inflation going forward. Many increasingly believe the duties will result in simply a one-time boost to prices that will quickly fade and not lead to ongoing inflation.

    “Tariffs will boost inflation in the near term, but likely not in a persistent way” that would require the Fed to keep rates elevated, Mary Daly, president of the Fed’s San Francisco branch, said in a recent speech.

    Daly also said the labor market has “softened” and suggested the Fed “will likely need to adjust policy in the coming months.”

    However, Raphael Bostic, president of the Fed’s Atlanta branch, said Wednesday that the tariffs could lead to longer-term inflation if they cause more manufacturers to shift output from lower-cost locations overseas back to the United States, or to other countries with higher wages. Such a change would be more than just a one-time shift.

    “You’re going to see fundamental structural changes if this is successful,” Bostic said in remarks in Red Bay, Alabama. “It is actually a different economy.”

    In that scenario, Bostic said, he would prefer to wait “until we have a little more clarity.” And he added that with unemployment low, “we have the luxury to do that.”

    Thursday’s July wholesale price report, which showed a sharp jump in goods and services prices before they reach the consumer, did make one move less likely: A half-point cut in September, as suggested by Treasury Secretary Scott Bessent.

    Alberto Musalem, president of the Fed’s St. Louis branch, who votes on Fed policy this year, said that a reduction of that size is “unsupported by the current state of the economy, and the outlook for the economy,” in an interview on CNBC.

    Tim Duy, an economist at SGH Macro, said Thursday that the Fed may have to raise its inflation forecast at its September meeting when it provides its latest set of quarterly economic projections. The central bank’s policymakers currently expect inflation, excluding volatile food and energy, to reach 3.1% by the end of this year, yet inflation is already near that level.

    Cutting rates at the September meeting would be hard for the Fed if it is also forecasting higher inflation, Duy said.

    “There are things that could happen that would push the Fed off the path” toward a rate cut, he said. “We’re not paying adequate attention to those risks.”

    Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

    Share this @internewscast.com
    FacebookXRedditPinterest
    You May Also Like
    Colombian theft group busted after Central Florida home burglaries
    • Local news

    Colombian Burglary Ring Uncovered Following Central Florida Home Invasions

    ORANGE COUNTY, Fla. – Authorities in Central Florida have apprehended a Colombian…
    • Internewscast
    • October 23, 2025
    Tropical Storm Melissa to strengthen Friday: NHC
    • Local news

    NHC Predicts Tropical Storm Melissa’s Intensification by Friday

    TAMPA, Fla. (WFLA) — The National Hurricane Center has warned that Tropical…
    • Internewscast
    • October 23, 2025
    Illinois politician Darren Bailey's son, family killed in crash
    • Local news

    Tragic Accident Claims Lives of Illinois Politician Darren Bailey’s Son and Family Members

    In a tragic turn of events, former Illinois state senator and Republican…
    • Internewscast
    • October 23, 2025
    Texas couple accused of moving, leaving child behind
    • Local news

    Texas Parents Allegedly Abandon Child During Move

    In Copperas Cove, Texas, a 12-year-old boy returned from school to a…
    • Internewscast
    • October 22, 2025
    Texas book-rating law ruled unconstitutional by federal court for 3rd time
    • Local news

    Federal Court Declares Texas Book-Rating Law Unconstitutional Again

    AUSTIN (KXAN) — The protracted legal dispute over a contentious Texas law…
    • Internewscast
    • October 23, 2025
    Addressing Human Sex Trafficking in the CSRA following Columbia County arrest
    • Local news

    Columbia County Arrest Sparks Urgent Action Against Human Sex Trafficking in the CSRA

    AUGUSTA, Ga. – An Augusta woman finds herself behind bars following serious…
    • Internewscast
    • October 23, 2025
    Woman admits guilt in ‘death wish’ murder of son
    • Local news

    Mother Confesses to ‘Death Wish’ Killing of Her Son

    In a harrowing case from Grand Haven, Michigan, a mother has admitted…
    • Internewscast
    • October 23, 2025

    Grainger County Resident Faces $57,000 Repayment Following Social Security Overpayment Ruling

    In Grainger County, Tennessee, a woman with disabilities has been hit with…
    • Internewscast
    • October 23, 2025
    Violent gang operating in Wisconsin targeted by FBI; arrests made, drugs seized
    • Local news

    FBI Cracks Down on Violent Wisconsin Gang: Multiple Arrests and Major Drug Seizure

    In Milwaukee, Wisconsin, a comprehensive investigation spanning several years has culminated in…
    • Internewscast
    • October 23, 2025
    Wanted man nabbed in Sanford months after fatal shooting, police say
    • Local news

    Fugitive Apprehended in Sanford: Key Arrest in Months-Long Homicide Investigation

    SANFORD, Fla. – A suspect in a murder case that took place…
    • Internewscast
    • October 23, 2025
    Calvary Day baseball receives state championship rings
    • Local news

    Calvary Day Baseball Team Celebrates State Championship Victory with New Rings

    In a moment of triumph and celebration, the Calvary Day baseball team…
    • Internewscast
    • October 23, 2025
    Trick-or-Chill! A cold front arrives right on cue for Halloween
    • Local news

    Spooky Weather Alert: Chilling Halloween Cold Front Set to Haunt Your Town!

    ORLANDO, Fla. – Though recent “cold fronts” have left us wanting more,…
    • Internewscast
    • October 23, 2025
    Luigi Mangione joked about paying for prostitutes with Pokémon cards during Asia trip: report
    • US

    Report: Luigi Mangione Allegedly Jokes About Using Pokémon Cards for Payment During Asia Visit

    Luigi Mangione, the alleged assassin, humorously recounted using valuable…
    • Internewscast
    • October 23, 2025

    Urgent Alert: Virginia Declares State of Emergency Over Imminent SNAP Benefits Crisis

    RICHMOND, Va. (WRIC) — Virginia has declared a state of emergency on…
    • Internewscast
    • October 23, 2025
    Mom of Missing 9-Year-Old California Girl, Last Seen Months Ago, Uncooperative with Search
    • Crime

    Solo Return: Melodee Buzzard’s Mother Seeks New Ride After Mysterious Road Trip

    Earlier this month, the mother of Melodee Buzzard, a missing girl from…
    • Internewscast
    • October 23, 2025
    Caregiver burned patient with lighter, blamed wasps: Cops
    • Crime

    Shocking Incident: Caregiver Allegedly Burns Patient with Lighter, Claims Wasp Attack – Police Investigate

    Share A healthcare worker in Louisiana is facing allegations of using a…
    • Internewscast
    • October 23, 2025
    Internewscast Journal
    • Home
    • Privacy Policy
    • DMCA Notice
    • Terms and Conditions
    • Guest Post
    • Support Our Cause
    Copyright 2023. All Right Reserverd.