During the presidential debate, Donald Trump accused Kamala Harris and the Biden administration of overseeing significant inflation, although he exaggerated by saying it was the worst in U.S. history. Harris countered by mentioning the Inflation Reduction Act and warned about the potential for Trump’s tariffs to ignite inflation. Since the start of the pandemic, the cost of household items like milk and eggs has risen by about 21%, while dining out has become 4-5% more expensive. Housing costs have seen an even greater increase, with rents up 25% on average nationwide. Evictions have also risen in some regions, while mortgage delinquencies are increasing due to a slowing job market. The Federal Reserve is expected to cut interest rates by 0.25% to combat inflation, but experts believe it may not be enough to prevent a “hard landing” for the economy. Despite some economists seeing signs of a “soft landing”, concerns remain over the economy’s future trajectory. Investors will closely monitor the Fed’s decision and announcements to determine if further rate cuts are necessary to support economic growth.
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The impact on consumers and businesses
