The latest US Labor Department data shows inflation easing to 3.2% in September, marking a slight decline from August’s 3.4%. This moderation has fueled optimism that the Federal Reserve may soon consider reducing its benchmark interest rates, which have remained high since 2023.
Food and housing costs continue to rise, but energy and transportation prices have seen noticeable declines. Economists say this trend indicates that the US economy is stabilizing after a turbulent two years marked by pandemic-related disruptions and global conflicts affecting supply chains.
Federal Reserve Chair Jerome Powell stated that the inflation trend “is moving in the right direction,” though he emphasized that the Fed would act cautiously before making any policy changes. Lower borrowing costs could provide relief for American households and global markets, including emerging economies like India, where US monetary policy has strong ripple effects.