Inflation Holds Steady at 3.7%, Sparking Concerns Over Fed Response

High inflation remains a pressing issue for many Americans, as the Commerce Department reported on Wednesday that prices rose 3.7% in July compared to the same month last year.

This marks the second consecutive month with this level of inflation and is higher than the Federal Reserve's target of 2%. The Fed has been monitoring inflation closely, particularly since the US and Israel attacked Iran in late February, which pushed prices up from 2.9% to their current level.

The ongoing conflict in Iran, along with President Donald Trump's threats of new tariffs on Canada and China, have contributed to higher gas prices, which remain above $4 per gallon, according to the AAA.