US Inflation Remains Above Target as Fed Discusses Rate Cuts
US inflation hit 3.0% in September, above the 2% target. Fed may cut rates in December despite persistent inflation.
The annual inflation rate in the United States reached 3.0% for the twelve months ending in September, compared to 2.9% in the previous period, according to data from the US Department of Labor released on October 24, 2025. Statements from Federal Reserve officials indicate a tendency toward lowering interest rates at the December meeting as a risk management step, even though inflation remains above the central bank's 2% target. The current federal interest rates range between 3.75% and 4.00%.
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