Donald Trump Says 'No Inflation!!!,' But This Economist Asks 'Says Who?' As August CPI Rises In Line With Estimates

Economic Overview - The U.S. economy experienced inflation acceleration in August, with a 2.9% annual headline inflation rate and a 3.1% core inflation rate, which excludes food and energy prices [3][6] - The Consumer Price Index (CPI) rose 0.4% for the month, aligning with market expectations [6] Federal Reserve Implications - Economists believe the inflation report strengthens the case for a Federal Reserve interest rate cut in September, despite some noting that headline inflation was higher than expected [4][5] - The inflation figures are still above the Fed's 2% target, but the data suggests a gradual approach to any potential rate cuts rather than an aggressive pivot [5] Market Sentiment - There has been a notable shift in market sentiment regarding Federal Reserve rate cuts, moving from uncertainty about whether a cut will occur to expectations of how many cuts may follow [6]