Economy

Most of the decline in services prices is attributable to a 3.9% drop in margins for machinery and vehicle wholesaling, while finished consumer goods excluding food and energy rose at the fastest pace since February.

The BLS adjustment indicates that the labor market slowdown in recent months followed an extended period of moderate job growth, which may lay the groundwork for a series of interest rate cuts beginning next week.

In August, hiring at U.S. companies was lower than forecast, consistent with other evidence that points to weaker demand for workers.

At the same time, August saw an increase in orders and the lowest price increases for raw materials since February.

Survey reveals expectations that higher import taxes imposed by President Donald Trump will feed through more broadly into consumer prices before gradually dissipating next year.

He seems to believe if he “has a majority” of Fed governors, he can pressure them to make federal borrowing much cheaper. That approach would be highly likely to backfire in the long run.