US economy: 13% booming, 87% weakened

The Fed would seem to have a ton of reasons not to cut its key rates at its 17 September meeting. Inflation is picking up again, extending the period of exceeding the 2% target to already four years and six months. Financial and real estate asset values are not far from their record highs. Corporate profitability is well above historical norms. Investment spending is being driven by the AI boom. Tariff uncertainty, although still high, has fallen sharply since Liberation Day. Fiscal policy is expansionary. Let's forget all that, because the labour market took such a worrying turn over the summer that it justifies resuming the cycle of monetary easing.