The United States Federal Reserve is walking a tightrope. It wants to keep employment high and inflation low. But both are pointing in the wrong direction.
For now, policymakers seem more worried about the health of the labour market than the risk of rising prices.
For the first time since December, the central bank has lowered interest rates to help shore up the ailing job market. But that might also push prices up.
Also – the Fed faces political pressure, with President Donald Trump accused of challenging its independence.
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Published On 18 Sep 2025