US: Growth and hiring accelerate in August, whilst selling price inflation hits three-year high

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Normally, high inflation argues against a rate cut. Central banks (like the Fed) cut rates when growth is weak and inflation is low (to stimulate demand). But here, growth and hiring are strong, and inflation is already running hot. Cutting rates would pour more fuel on the fire — encouraging borrowing, spending, and possibly worsening inflation.
Instead, in such a situation, the more likely policy stance is to hold rates steady or even raise them, depending on how persistent the inflation looks.

Quoting Jr123

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{quote} Looks like more statisticians are about to be fired.[/ There’s so many mixed messages from these data releases you could well be right . That’s a really strong pmi report.

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Quoting Trader#F781

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{quote} Mate: The outlier is a rate increase in coming weeks and months ahead!!!! The pundits can't help themselves or back down from the narrative they are pushing for a rate cut???? I sincerely, don't anticipate a rate cut in September -2025. The Fed is data dependent and will remain in a wait and see mode!! A lot of investors and Traders are going to be disappointed with the September meeting. I sincerely, hope you are not one. of them. You are a voice of reason and use your intellect judiciously. See the unseen and read in-between the lines!!!...

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Quoting P2Kcheckmate

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Mother fuckers...

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Quoting Trader#45A4

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2 year yield vs fed funds rate doesn’t line up, one of them is wrong, either bond market wrong expecting 3 rate cuts, or fed wrong in their view

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Quoting Vancarbon

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That’s a mixed bag if ever I’ve seen one , taking into account other data . Odds still of a September rate cut.

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Quoting Vancarbon

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From the report itself: Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “A strong flash PMI reading for August adds to signs thatUS businesses have enjoyed a strong third quarter so far. The data are consistent with the economy expanding at a2.5% annualized rate, up from the average 1.3% expansion seen over the first two quarters of the year “Companies across both manufacturing and services are reporting stronger demand conditions, but are struggling to meet sales growth, causing backlogs of work to rise at a pace...

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Quoting ZakTheMak

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Stagflation

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Quoting Vancarbon

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From the report itself: Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “A strong flash PMI reading for August adds to signs that US businesses have enjoyed a strong third quarter so far. The data are consistent with the economy expanding at a2.5% annualized rate, up from the average 1.3% expansion seen over the first two quarters of the year “Companies across both manufacturing and services are reporting stronger demand conditions, but are struggling to meet sales growth, causing backlogs of work to...

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Quoting Trader#F781

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{quote} Mate: The outlier is a rate increase in coming weeks and months ahead!!!! The pundits can't help themselves or back down from the narrative they are pushing for a rate cut???? I sincerely, don't anticipate a rate cut in September -2025. The Fed is data dependent and will remain in a wait and see mode!! A lot of investors and Traders are going to be disappointed with the September meeting. I sincerely, hope you are not one. of them. You are a voice of reason and use your intellect judiciously. See the unseen and read in-between the lines!!!...

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