Fed Faces Complicated Decision as US Inflation Rises 0.1%

US inflation rose by 0.1% in July, bringing the annual rate to 3.4%. This mild increase has eased pressure on the Federal Reserve as it considers an interest rate hike in September.

The data also coincides with a weak jobs report for July, further bolstering the argument that rates should be held steady. However, economists remain divided on the best course of action, and another set of inflation figures is due before next month's meeting.

A former Fed economist was quoted as saying, 'It's complicated to hold; it's also complicated to hike, and it's almost impossible to cut.'

The odds that the Fed will keep rates steady have increased to 60%.