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BIZThe Guardian

Good news in US inflation report boosts chances Fed won’t hike rates

Photo: Sarah Yenesel/EPA

Good economic news boosted Wall Street’s main indexes on Wednesday, as a softer-than-anticipated inflation reading buoyed up hopes that the Federal Reserve might not hike rates as soon ⁠as next month.

A commerce department report ⁠showed the personal consumption expenditures (PCE) ​price index stood at 3.4% on an annual basis in August against estimates of 3.7%, per economists polled by Reuters.

Separately, second-quarter GDP data – the broadest measure of the economy’s health – showed that the US economy grew at a solid clip, driven ⁠by robust consumer spending and business investment related to the buildout of AI infrastructure.

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BIZThe Guardian

Federal Reserve watchdog finds no criminal violations for building renovation cost overruns

Trump criticized $2.4bn rehab amid attempts to pressure then Fed chair Jerome Powell into lowering interest rates An internal watchdog said the Federal Reserve mismanaged costs associated with a $2.4bn renovation of its Washington DC headquarters, but noted that no criminal violations occurred, according to a report released on Wednesday. For over a year, Donald Trump has centered his attacks against the Fed and former chair Jerome Powell around the renovations, including a months-long Department of Justice criminal investigation that was dropped in…

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