This is not only a worrying sign for the Federal Reserve but also for the Biden government and the candidates of the Democratic Party competing for mid-term elections on November 8. This means that the 12-month CPI has remained above the 8% level for the past six months.

This will only encourage the Federal Reserve to adopt an aggressive stance to curb inflation and bring it back to its YoY target of 2%. Meanwhile, the resilience of the labor market, along with the robust wage increase, reflects that inflation has not peaked yet. The rise in inflation comes at a time when supply chain-related challenges are easing across the world due to relaxation in COVID-19-related lockdowns. This has strengthened the case for the Federal Reserve to increase the benchmark interest rates by 0.75% during its meeting scheduled for next week. As reported by the US Department of Labor on September 13, The Consumer Price Index (CPI) increased by 0.1% in August as opposed to a consensus forecast expecting a dip of 0.1%. The US stock markets have come under pressure as inflation rose faster than expected during August 2022. If you want to skip our discussion on the overall economic environment in the US, go to 5 Best 52-Week Low Small-Cap Stocks to Buy Now.

In this article, we discuss the 10 best 52-week low small-cap stocks to buy now.

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