Trump's Economic Promises Left Hanging by Inflation Report

The latest economic report from the Bureau of Labor Statistics has delivered a blow to President Trump's chances of saving the GOP in this year's midterms. The consumer price index rose by 0.4% in August and 3.4% over the past year, while core CPI increased by 0.3% for the month and 2.4% annually.

The news is particularly bad because it shows that inflation-adjusted wages have been falling for the fifth consecutive month. This development comes just before the Federal Reserve's vote on whether to raise interest rates for the first time since 2023, which could lead to higher costs for mortgages, credit cards, and other expenses.

President Trump has been pressuring new Fed Chairman Kevin Warsh to lower interest rates, but Warsh has signaled that he will prioritize controlling inflation. With investors putting the odds of a rate increase at over 85%, it seems likely that Trump's promise to bring down prices 'on Day One' has failed.