The U.S. inflation rate fell to 3.1% in September, the lowest in more than two years, signaling a possible end to the Federal Reserve’s aggressive rate hikes.
Energy and housing costs, major inflation drivers, saw modest declines, while food prices remained stable. Economists suggest that if the trend continues, the Fed may announce a rate cut early next year.
President Joe Biden welcomed the news, calling it “a sign that our recovery is strong and steady.” However, analysts warn that lingering global uncertainties — including Middle East tensions and Chinese market instability — could still impact long-term stability. The Dow Jones and Nasdaq both saw modest gains following the announcement.