The US consumer is showing some strain

On 28 August 2026, Fed Chair Kevin Warsh said in a Jackson Hole speech that inflation remains 'too high' and that the Fed has 'work to do' if above-target inflation persists, signaling that rate hikes may be needed. He vowed to hit the Fed's 2% target. US stocks fell, borrowing costs and bond yields rose, and gold dropped as bets on rate hikes increased. Bloomberg wrote that the speech sets up a September showdown for the Fed, and The Telegraph wrote that he signaled he could defy Trump on rates.

The Financial Times reported that the US consumer is showing some strain, that US corporate profits surged to a record while worker payouts wilted, and that US manufacturing is booming, though not because of Trump's tariffs. The Star reported that nearly three in four US young adults think AI will reduce jobs.