Inflation Eases But Still High as Strong Job Market Offsets Recession Worries
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Inflation slowed recently but remains above the Fed's 2% target. Gas prices drove the largest monthly increase in August.
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The job market is strong with low unemployment, but wage growth started outpacing inflation only recently.
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Consumer spending rose in August, but falling consumer sentiment and rising household debt signal potential trouble.
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Economists are split on recession odds - some see soft landing, others say recession still likely in 2023/2024.
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Fed may not hike rates much further but will likely keep them high for longer than expected, roiling markets.
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