U.S. price pressures intensify amid rise in fuel costs, Fed survey shows — SkimNews
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- Federal Reserve's Beige Book showed the U.S. labor market stuck in a "low-hire, low-fire" state, with three of 12 districts describing price growth as "intensifying" and eight as moderate
- Firms surveyed by the Fed reported elevated diesel prices with fuel surcharges passing costs through the supply chain, alongside continued pressure from tariffs, commodities, and insurance across multiple districts
- Consumer prices rose 3.7% year-over-year through September, above the Fed's 2% target and the Reuters consensus, driven largely by Middle East war gasoline costs plus AI-driven software and toy prices and Trump's tariffs
- 30-year fixed mortgage rates reached 7.5%, the highest in nearly three years, according to the Mortgage Bankers Association
- Financial markets are pricing about a 37% chance of a rate hike at the Fed's Oct. 27-28 meeting, after the central bank raised rates 25 bps to 3.75%-4.00% last month
- Cost of living ranked as the top issue for voters in a recent Reuters/Ipsos poll ahead of the Nov. 3 midterm elections, which will determine control of Congress
Why it matters: With cost of living the top voter concern ahead of the Nov. 3 midterms, intensifying price pressures and a 7.5% mortgage rate squeeze U.S. households just as the Fed weighs whether to hike at its Oct. 27-28 meeting — markets see just a 37% chance of a move.
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