SEPTEMBER 15, 2025 – – FEWER JOBS, INFLATION AT 2.9 PERCENT
The labor market in 2024 and 2025 has been weaker than previously reported. The Bureau of Labor Statistics put out its largest revision ever recorded, dropping the number of new jobs created between March 2024 and 2025 by 911,000.
Later in the week it was reported that inflation rose in August to 2.9 percent from 2.7 percent in July. The number is the highest recorded in 2025, but was in line with expectations, as businesses are passing along the higher tariff costs onto consumers. The 12-month inflation is now at 3.1 percent.
The Fed is n a conundrum just ahead of their meeting this week, where a drop in interest rates was expected. It is unlikely the Fed will derail the cut, but it puts into question how many more cuts will happen in the short term. Fears for stagflation remain. Fed Chair Powell has suggested the weakness in the labor market will lead to easing, the increase in inflation from the tariffs being a one-off event.