US Economy Grapples with High Inflation as Fed Considers Rate Hikes

The US economy continues to face high inflation, with the latest data showing that prices rose 3.7% in July compared to the same month last year.

This is above the Federal Reserve's target of 2%, and marks a continued trend of elevated inflation since the US and Israel attacked Iran in February.

Fed Chair Kevin Warsh acknowledged this week that recent data shows inflation has cooled slightly, but noted that 'underlying trends have not meaningfully improved.' He suggested that interest rates may need to be raised to bring inflation back down to target.