What’s keeping the Fed on guard is a possible jump in inflation because of President Donald Trump’s tariffs. That’s because lower interest rates can give inflation more fuel and send it even higher. And inflation has so far proven difficult to get under the Fed’s 2 per cent target.

Another threat for Wall Street is if the job market slows too much. In that case, a resulting recession could create a downturn in corporate profits that’s big enough to swamp the benefits that lower interest rates bring in the near term.

Trump, meanwhile, has been pushing angrily for more cuts to interest rates. He’s often attacked Powell personally, nicknaming him “Too Late,” and is pushing for the removal of one of the Fed’s governors from its board.

“‘Too Late’ must cut interest rates now, and bigger than he had in mind,” Trump wrote on his social media network Monday, using his trademark all-caps style.

On Wall Street, TKO Group climbed 1.4 per cent after the owner of the UFC mixed-martial arts organisation and other entertainment brands announced a plan for $US1 billion in purchases of its stock. Such moves send cash directly to shareholders and can boost per-share results.

Intel rose 2.9 per cent after trimming its forecast for expenses this year. The move came after it completed the sale of a 51 per cent stake in its Altera business to the Silver Lake investment firm.

On the losing side of Wall Street was Hain Celestial, which fell 24.7 per cent after reporting a larger loss for its latest quarter than it did a year earlier. Interim CEO Alison Lewis said the owner of “better-for-you” brands like Terra chips is making moves to stabilise sales “as we recognise our performance has not met expectations.”

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Alaska Air Group lost 4.7 per cent after the airline said high fuel costs during the summer will likely cause its third-quarter results to come in at the low end of its forecasted range. It also cited higher expenses for overtime pay and for passengers’ compensation after bad weather and air-traffic control issues led to difficult operations, though it saw strong airfare trends thanks to demand for premium seats.

In the bond market Treasury yields eased, continuing their downward run on expectations for cuts to rates by the Fed.

The latest discouraging data on the economy came Monday from a report showing manufacturing activity in New York state is shrinking, contrary to economists’ expectations for continued growth. It’s the first month of contraction since June.

The next big economic update will arrive Tuesday, when the US government will say how much shoppers spent at US retailers last month.

The yield on the 10-year Treasury fell to 4.04 per cent from 4.06 per cent late Friday.

In stock markets abroad, France’s CAC 40 climbed 0.9 per cent, while indexes moved more modestly across the rest of Europe and Asia.

AP