![\"Composite](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/government-shutdown.jpg\")
<\/p>\n
The U.S. Capitol is seen during the 23rd day of the federal government shutdown and a driver pumping gas in Miami amid rising fuel prices contributing to inflation. (Celal G\u00fcne\u015f\/Anadolu via Getty Images; Joe Raedle\/Getty Images)<\/p>\n
WHAT FED MUST DO NOW AFTER JEROME POWELL’S JACKSON HOLE EPIPHANY<\/a><\/p>\n That’s the highest since January and up from 2.9% in August. Excluding the volatile food and energy categories, core prices also rose 3%, down from 3.1% in the previous month. Cooler inflation data for September sent Wall Street surging Friday.<\/p>\n “THE STOCK MARKET IS STRONGER THAN EVER BEFORE BECAUSE OF TARIFFS!” Trump wrote on Truth Social.\u00a0<\/p>\n It comes as investors bet on another Federal Reserve<\/a> rate cut following the new inflation figures.\u00a0<\/p>\n Core inflation, excluding food and energy, also eased to 0.2% monthly and 3.0% annually, showing modest cooling, while gasoline prices \u2014 the biggest driver of inflation \u2014 surged 4.1% following several months of declines.<\/p>\n White House press secretary Karoline Leavitt hailed the figures in a statement to Fox News Digital.<\/p>\n “Inflation came in below market expectations in September thanks to President Trump\u2019s economic agenda<\/a>,” Leavitt said.<\/p>\n President Donald Trump hailed news that the stock market was surging Friday. (Kevin Dietsch\/Getty Images)<\/p>\n “This is good news for American families, and it\u2019s a shame the Democrats are using them as leverage to fund health care for illegal aliens. Democrats choosing to keep the government closed<\/a> will likely result in no October inflation report, which will leave businesses, markets, families, and the Federal Reserve in disarray,” Leavitt said.\u00a0<\/p>\n “Because surveyors cannot deploy to the field, the White House has learned there will likely NOT be an inflation release next month for the first time in history,” the administration added in an emailed statement to The Associated Press.<\/p>\n Republicans have blamed the shutdown on Democrats, arguing that they refused to fund the budget in an attempt to reinstate taxpayer-funded medical benefits for illegal immigrants through Democrat lawmakers’ continuing resolution, which would include extending the expiring Obamacare tax credits.<\/p>\n Democratic leadership has disputed the claims, saying that Trump and Republican lawmakers are really behind the shutdown.<\/p>\n The report comes as the broader economy shows steady growth but slower hiring, creating a mixed picture for consumers and markets.<\/p>\n Traders work on the floor of the New York Stock Exchange in New York on Oct. 9, 2025. Stocks rallied to record highs Friday after new inflation data came in cooler than expected, fueling bets on another Federal Reserve rate cut. (Michael Nagle\/Bloomberg via Getty Images)<\/p>\n Rents rose just 0.2%, the smallest yearly gain in nearly four years, while consumer prices increased 3% in September from a year earlier, the highest since January, and up from 2.9% in August.<\/p>\n The figures show that inflation continues to rise more slowly than many economists expected when Trump imposed sweeping tariffs in April. Economists estimate that the tariffs are adding roughly 0.4 percentage points to annual inflation.<\/p>\n Some of those duties were later reduced as part of trade deals, while many companies have only passed on part of the tariff cost to consumers out of concern that doing so would reduce sales. Businesses may shift more costs to consumers in the coming months if the duties appear permanent.<\/p>\n TRUMP BLASTS \u2018TOO LATE\u2019 POWELL AGAIN, THREATENS LAWSUIT OVER FED\u2019S $3B HQ RENOVATIONS<\/a><\/p>\n The smaller increase will come as a relief to the Federal Reserve, which has signaled it will cut interest rates again next week \u2014 the second time this year \u2014 even as inflation remains above its 2% target.<\/p>\n Kevin Hassett, director of the National Economic Council, echoed Leavitt\u2019s optimism, saying the latest numbers show inflation continuing to move in the right direction despite the shutdown pause in reporting<\/a>.<\/p>\n “This is actually a really great report,” Hassett told Fox News. “The market is responding appropriately to good news, because 48 Bloomberg economists said this number was going to go way up. If you look at core CPI \u2014 the measure economists rely on most \u2014 it was down from August, below expectations and headed in the right direction.”<\/p>\n Federal Reserve Chairman Jerome Powell is expected to cut interest rates again next week. (Chip Somodevilla\/Getty Images)<\/p>\n![\"President](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/trump-smiling.jpg\")
<\/p>\n![\"Traders](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/wall-street-traders.jpg\")
<\/p>\n![\"Federal](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/j-pow-fed.png\")
<\/p>\n