The Impact on Consumers and Businesses

In the presidential debate, Donald Trump accused Kamala Harris and the Biden administration of overseeing significant inflation, with prices rising by an average of 21% since the start of the pandemic. Food prices have seen notable increases, with housing costs posing the greatest risk to Americans’ living standards. Rents have risen by 25% nationally, with some cities seeing even higher increases. The inflation report is expected to lead to a cut in the Federal Reserve’s key interest rate, though experts warn that the impact on consumers may be slow. While some economists believe the economy is heading for a “soft landing,” others fear a “hard landing” due to weak job data. The Fed’s upcoming interest rate cut may not be sufficient to prevent this scenario, as investors await further actions to address potential economic weaknesses. Ultimately, the future state of the U.S. economy remains uncertain, with factors like wage growth, consumer spending, and GDP influencing economists’ predictions.

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