Symbolic imageUS inflation rises to 3.7% on fuel costs, lifting Fed hike bets
US inflation accelerated in September as fuel costs rose. Markets are betting on further Fed tightening.
The Bureau of Labor Statistics reported on Wednesday, 14 October, that annual inflation rose to 3.7% from 3.4% a month earlier, the first increase since May, according to The American Conservative. The Financial Times says headline and core inflation both accelerated and beat market expectations, keeping the Fed on course for further tightening. Bloomberg reports that consumer prices climbed by the most since April on fuel costs.
Yields and dollar climb
The Wall Street Journal and Bloomberg report that Treasury yields jumped and the dollar strengthened, with Bloomberg putting the dollar at its highest since May 2025. The Journal also reports that US stock futures fell.
Fed sees no urgency
The Wall Street Journal reports that Fed official Bowman said inflation is above the goal but that there is no urgency to act.
Midterm pressure
The Financial Times says the fuel rebound adds pressure on voters ahead of the midterm elections. At a rally in Alaska on Tuesday, Trump suggested the US will relaunch major hostilities against Iran, but denied he will attack before the early-November vote, The American Conservative reports.