Inflation in the United States rose in August, indicating a significant challenge for the Federal Reserve.

In August, the inflation rate in the United States rose to 2.9%, highlighting the challenges facing the Federal Reserve before making a crucial interest rate decision next week. The annual Consumer Price Index released by the US Bureau of Labor Statistics on Thursday was higher than July's 2.7%, also in line with analysts' predictions of 2.9%. The core inflation rate remained stable at 3.1%, as expected. At the time of this data release, the Federal Reserve is struggling to address a weak labor market and political pressure from President Trump to lower interest rates. Traders continue to expect the Federal Reserve to cut rates by 25 basis points next week, but they are also betting that the pace of rate cuts will slightly accelerate in subsequent meetings. Federal Reserve Chairman Powell has already opened the door to a rate cut in September, stating at the end of last month that the weak job market will ease the risk of inflation rising due to Trump's comprehensive tariffs.