Fed Holds Rates Steady as Inflation Trends Downward

NewsData.io · United States · Aug 12, 2026

The Federal Reserve signaled a pause on rate hikes after July CPI data showed headline inflation rising only 0.1% month-over-month, with year-over-year at 3.4% — still above the 2% target but trending lower. Core CPI grew 0.2% monthly and 2.4% annually, while average hourly earnings rose a modest 2.3% over the last quarter. Stable wage growth and payroll levels reduce concerns about demand-driven inflation, making a September rate hike unlikely. For staffing firms, a rate-hold environment supports continued business investment and hiring demand from client companies.