US Inflation Woes: Americans Struggle Amid Energy Costs

Americans are struggling to make ends meet as inflation remains high, according to Boston Federal Reserve President Susan Collins.

Collins stated that lower- and middle-income households in the US north-east are facing growing pressure from prices, which have stayed above the Fed's 2 per cent target for more than five years.

The conflict involving the US and Iran has added to inflation pressures this year, with oil shipments through the Strait of Hormuz slowed sharply, pushing up energy costs. New England is particularly vulnerable due to its heavy reliance on heating oil during winter.

Collins noted that she supports keeping interest rates unchanged for now but would be prepared to support a rate increase in September if incoming economic data shows tighter policy is needed. The Fed's decision has become more difficult due to the weak jobs market, with a loss of 23,000 jobs in July and an average of just 20,000 jobs added per month over the past three months.