Category World News

New York, USA – Next week, the United States Federal Reserve will hold a two-day policy meeting to decide whether to lower interest rates.

The meeting follows a months-long pause in rates and comes amid heightened pressure on the central bank.

US President Donald Trump recently dismissed Federal Reserve Governor Lisa Cook on allegations of mortgage fraud, which she is contesting in court, and has escalated his loud and repeated criticism of Fed Chair Jerome Powell.

The Fed, which emphasises its independence from political influence, will weigh new economic data as it considers its next move. The benchmark interest rate has remained at 4.25 percent – 4.50 percent since December.

So far, the Fed has held rates steady, saying the stance preserves flexibility to respond to economic shocks tied to shifting trade policy. But many economists now believe a rate cut is imminent.

They point to signs of a cooling labour market and tariff-related pressure on inflation as factors that could support lowering rates, not political pressure.

“I think that the Fed has made it pretty clear that they’re going to cut rates in September, and the market certainly expects that,” Daniel Hornung, policy fellow at Stanford Institute of Economic Policy Research and former deputy director of the National Economic Council, told Al Jazeera.

CME FedWatch, which tracks the probability of Fed policy moves, puts the likelihood of a quarter of one percentage point cut at 94.5 percent, echoing research from JPMorgan last month.

“For Fed Chair Jerome Powell, the risk management considerations may go beyond balancing employment and inflation risks, and we now see the path of least resistance is to pull forward the next cut of 25 basis points to the September meeting,” Michael Feroli, chief US economist at JP Morgan, said at the time.

Prices jump

Consumer prices rose 0.4 percent in August from the previous month, the sharpest increase in seven months, according to the Labor Department’s consumer price index (CPI) report released on Thursday.

The gain followed a 0.2 percent rise in July. Economists surveyed by Reuters had forecast a 0.3 percent monthly increase in core CPI.

Energy costs climbed 0.7 percent, fueled by a 1.9 percent jump in gasoline. Airfares climbed 5.9 percent, apparel prices rose 0.5 percent, shelter increased 0.4 percent, grocery prices were up 0.6 percent, and restaurant meals rose 0.3 percent.

Some goods saw particularly steep increases. Coffee prices jumped 3.6 percent on the month as Brazil, the world’s top coffee exporter, redirected shipments away from the US following new tariffs.

The Producer Price Index (PPI), which tracks prices businesses receive for goods and services, showed coffee up nearly 7 percent from July and more than 33 percent over the past year.

There is a comparable phenomenon with beef, for which the US relies heavily on Brazil.  CPI data showed a 2.7 percent increase, while the PPI measured a 6 percent monthly rise and a 21 percent yearly increase.

Overall, the PPI slipped 0.1 percent, suggesting some businesses are absorbing tariff costs rather than passing them to consumers. Service prices fell 1.7 percent, driven by a 3.9 percent decline in margins for machinery and vehicle wholesalers, which offset a 0.1 percent increase in goods prices. That came after wholesale inflation was revised higher to 0.7 percent in July, which was well above economists’ forecasts.

Even so, companies are beginning to warn that they cannot continue absorbing higher costs. In recent weeks, Campbell’s Co, which makes Campbell’s Soup and Goldfish crackers, and Procter & Gamble have both said they plan to raise prices on consumer goods in the months ahead as tariff pressures persist.

Labour market tumbles

The US labour market, a key factor in the Federal Reserve’s interest rate decisions, has cooled sharply.

Approximately 263,000 people submitted initial jobless claims last week, the most in four years, Department of Labor data released on Thursday showed.

On Tuesday, the Bureau of Labor Statistics also revised down job gains over the past few months, as well as between April 2024 and March 2025, when the US economy added 911,000 fewer jobs than had been previously reported.

All of that is echoed by poor jobs numbers last week. In August, the economy added only 22,000 jobs, with gains concentrated in healthcare (which added 31,000 jobs) and social assistance (which added 16,000). The unemployment rate climbed to 4.3 percent, the Labor Department reported.

Revisions showed July job growth slightly stronger at 79,000, up from 73,000, while June was cut from a modest gain to a loss of 13,000.

“The recent job numbers were really, especially the revision of the earlier numbers, were really kind of problematic for the economy,” Michael Klein, professor of International Economic Affairs at the Fletcher School at Tufts University, told Al Jazeera.

Job openings and turnover also declined, leaving more unemployed workers than available positions for the first time since April 2021.

A report from Challenger, Gray & Christmas highlighted the strain, noting a 39 percent jump in job cuts between July and August. Private payroll growth slowed as well, according to the ADP National Employment Report, which showed just 54,000 jobs added, down from 106,000 the prior month.

Competing forces

Typically, high inflation prompts higher interest rates, which discourage borrowing and spending and help rein in prices.

“The Fed is in a very difficult position right now because there is both a weakening labour market and evidence of higher inflation. Typically, if the Fed is facing a weaker labour market, it would want to lower interest rates. And if it’s facing higher inflation, it would want to raise interest rates. But we’re in a situation now where there are countervailing forces,” Klein said.

The labour market is already weighing on consumer spending. Rising layoffs and slower hiring have made shoppers cautious, and the latest consumer confidence index shows plans to buy big-ticket and discretionary items are slipping.

With Trump’s shifting tariffs and hardline immigration policies, businesses are stuck in a “wait-and-see” mode, increasing uncertainty.

Conservative political activist Charlie Kirk was shot and killed on Wednesday. His suspected killer, identified by law enforcement as 22-year-old Tyler Robinson, was taken into custody after a substantial manhunt, based on information from people close to Robinson’s family. Utah Governor Spencer Cox said a family member of Robinson had reached out to a friend, who then contacted the authorities, and that friends and relatives interviewed by investigators described Robinson as “full of hate” when speaking about Kirk at a recent gathering. Robinson’s exact motivations for allegedly carrying out the shooting are still being explored.

If past instances of political attacks are any guide, more detailed information about Robinson’s potential motivations may be revealed over time. But we don’t need to read a manifesto or scroll through social media posts to know that any attempt to justify killing Kirk over his words or views is indefensible.

I mostly avoided Kirk’s rhetoric over the years. I found most of the content I heard from him distasteful, both to me and to many other Americans, and offensive to objective facts and discourse. Kirk often cherry-picked and distorted history to push agendas that many of us believe are not only abhorrent but also dangerous to racial and ethnic minorities, immigrants, and other marginalised people.

But I did not want Kirk to be harmed. When I learned that he had been shot, I did not want him to die. On the contrary, I prayed that God’s will be done in the situation – the same God whom Kirk and I both claimed, whatever our political disagreements may have been. I hoped that he would recover, and that his brush with death might help him gain a new, more constructive perspective on politics and life.

Last summer, I had similar hopes (though perhaps not expectations) that Donald Trump would be changed for the better after he survived an assassination attempt while speaking at a campaign event. “Trump has the opportunity to put the peace and security of the country ahead of his personal ambition,” I wrote at the time. “Perhaps coming so close to death will change his perspective on stirring up his supporters.”

That did not happen. Instead, Trump quickly returned to the same sort of demonising rhetoric and selective outrage that has heightened and polarised American politics. He pardoned the January 6 rioters who attacked Capitol police officers, as well as the Proud Boys members who had been convicted of conspiring against the United States government. And even with Kirk dying from a shooting similar to the one that almost took Trump’s life last year, the president and many of his supporters have mainly doubled down on the type of vitriol that has become all too common in American politics.

This is not to say that the MAGA movement or the right has been alone in condoning political violence or dehumanising others. When UnitedHealthcare CEO Brian Thompson was shot and killed late last year, his alleged killer, Luigi Mangione, became somewhat of a folk hero. While this killing does not appear to be explicitly partisan, many of the comments that mocked Thompson or celebrated Mangione took on the tone of class warfare. And when unsubstantiated rumours about Trump’s health started to circulate recently, many of his detractors seemed to celebrate the possibility that Trump could be incapacitated or worse, and expressed disappointment when he re-emerged in the public eye.

But toxic online rhetoric is one thing, and nearly any popular topic will elicit offensive or hateful commentary on social media. With the MAGA movement led by Trump, the hateful language of its most trollish followers is often indistinguishable from the rhetoric coming from the movement’s loudest and most prominent voices. After breaking the news of Kirk’s death on social media, President Trump posted a four-minute video honouring Kirk and demonising the political left.

“For years, those on the radical left have compared wonderful Americans like Charlie to Nazis and the world’s worst mass murderers and criminals. This kind of rhetoric is directly responsible for the terrorism that we’re seeing in our country today, and it must stop right now. It’s long past time for all Americans and the media to confront the fact that violence and murder are the tragic consequence of demonising those with whom you disagree day after day, year after year, in the most hateful and despicable way possible.”

Now seems like an appropriate time to remind you that, less than a year ago, Trump appeared on Fox News and referred to leftists as “the enemy from within” and “Marxists and communists and fascists,” specifically naming Adam Schiff and “the Pelosis” and calling them “so sick and so evil.”

“From the attack on my life in Butler, Pennsylvania, last year, which killed a husband and father, to the attacks on ICE agents, to the vicious murder of a healthcare executive in the streets of New York, to the shooting of House Majority Leader Steve Scalise and three others, radical Left political violence has hurt too many innocent people and taken too many lives.”

Noticeably absent from the president’s list were several violent, sometimes lethal, attacks against Democrats or carried out by self-declared MAGA followers. It is a calculated choice to condemn the shooting of a prominent Republican in 2017 but not the murders of two Democrats and the shooting of two others in Minnesota three months ago, or the torching of the Pennsylvania governor’s mansion while Democrat Josh Shapiro and his family slept inside. Condemning “attacks on ICE agents” after pardoning dozens of people who attacked Capitol police officers is a cynical double standard.

Through the discourse surrounding Kirk’s death, I’ve become familiar with the term “selective empathy,” a succinct phrase that covers a concept with which many of us are familiar. At their worst, President Trump and even Kirk engaged in this type of moral relativism, condoning actions against their opponents that they would condemn if done to their allies. And those of us who reject the MAGA ideology are at our worst when we tolerate, excuse, or even celebrate, violence against those who oppose us or who hold us in disdain.

At his best, Charlie Kirk manifested his core religious and political beliefs by appealing to the universal values of love and human dignity rooted in Christianity and the principle of equality on which the United States was founded. While he often failed to conform his rhetoric to these larger principles, Kirk and others in his ideological camp are still deserving of the empathy embedded in those principles. To deny them such consideration based on their views would be to undermine our own opposition to their divisive and even dangerous rhetoric. For all our sakes, we can and must do better.