Consumer prices in the United States experienced a significant increase, rising at an annual rate of 2.9% in August. This spike in inflation has been fueled by higher grocery and gas prices, as companies pass on the costs associated with Trump’s tariffs to consumers. The rise in inflation comes at a time when the job market is showing signs of weakness, with weekly jobless claims nearing a four-year high. The Federal Reserve is now in a challenging position, having to navigate between the demands of inflation and a slowing job market as it considers potential rate cuts. Despite the inflation increase, analysts suggest that deep Fed cuts may still be on the table, as inflation remains stubbornly high, complicating the outlook for monetary policy.