
Inflation Surges: Tariffs Drive CPI Higher While Fed Is Between a Rock and a Hard Place
Published September 11, 2025
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A wild, over-the-top parody card showing Fed Chair Jerome Powell as Tariff Tormentor, hammering at inflation with Trump pulling the strings. The image underscores how tariffs are fueling consumer price pressure while the Fed tries to walk the tightrope.
In August 2025, U.S. inflation accelerated to 2.9% year-over-year, with core inflation above 3%, largely driven by President Trump’s auto and import tariffs. The labor market is weakening, and jobless claims are rising. Chair Jerome Powell faces a dilemma: whether to cut interest rates, which risks fueling inflation, or hold them steady, which could further strain the economy.
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