Inflation Eases But Still High as Strong Job Market Offsets Recession Worries

Inflation slowed recently but remains above the Fed's 2% target. Gas prices drove the largest monthly increase in August.

The job market is strong with low unemployment, but wage growth started outpacing inflation only recently.

Consumer spending rose in August, but falling consumer sentiment and rising household debt signal potential trouble.

Economists are split on recession odds - some see soft landing, others say recession still likely in 2023/2024.

Fed may not hike rates much further but will likely keep them high for longer than expected, roiling markets.