Sep 30, 2026, 1:11 PMEconomy and Monetary Policy
Fed’s Preferred Inflation Gauge Rose Sharply in August, Supporting September Rate Hike
The Fed's preferred inflation gauge rose sharply in August, reinforcing its September rate increase, the first U.S. hike in three years, MarketWatch says.
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Summary
MarketWatch reported on September 30, 2026, that the Federal Reserve’s main inflation gauge rose sharply in August. The increase renewed pressure on the central bank as it sets U.S. interest rates.
The report said the inflation reading underscored the Fed’s decision to raise rates earlier in September, its first increase in three years. The available feed summary did not identify the gauge, quantify the August increase, provide its level or discuss the Fed’s next decision.
Positives
- The Federal Reserve raised interest rates in September 2026 after its main inflation gauge climbed sharply in August.
- September’s increase was the Fed’s first rate hike in three years, marking a change in its policy direction.
- The August gauge provided the stated rationale for the Federal Reserve’s September interest-rate action.
Risks & concerns
- The Federal Reserve’s main inflation gauge rose sharply in August, signaling renewed U.S. price pressure.
- The inflation increase kept pressure on the Fed after its first interest-rate hike in three years.
- The limited feed summary omitted the gauge’s name, percentage increase, latest level and underlying price components.
- MarketWatch provided no detail about the Federal Reserve’s next rate decision or policy outlook.
Primary sourceMarketWatch.com - Top Storieshttps://www.marketwatch.com/story/inflation-rises-again-and-keeps-pressure-on-fed-f64d2ced?mod=mw_rss_topstories
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