Federal Reserve In Tough Spot As Inflation Rises

WASHINGTON (AP) — Inflation rose last month as the price of gas, groceries, and airfares jumped, while a measure of layoffs also increased, putting the Federal Reserve in a tough spot as it prepares to cut rates at its meeting next week despite persistent price pressures. The reading is the last the Fed will receive before its Sept. 16-17 meeting, when policymakers are widely expected to cut their short-term rate to about 4.1% from 4.3%. Still, the new inflation data underscores the challenges the Fed is facing. Inflation remains stubborn while the job market is weakening, diverging trends that would require polar reactions from Federal Reserve policymakers to address.