Markets see Fed set for rate cuts

Concern about a softening job market will keep the Federal Reserve on course to resume its interest rate cuts next week, though the US central bank is likely to move cautiously because of fresh signs that tar-ifs are pushing prices higher.

- Reuters

That was the bet in financial markets on Thursday after government reports showed jobless claims jumped last week and consumer inflation rose more than expected in August, with particularly big increases in the prices of goods like furniture and cars that are heavily impacted by import duties.

Consumer prices rose 2.9% last month on a year-over-year basis, matching the rise in the comparable period in July.