Overview

• The Conference Board index fell 1.3 points to 97.4, erasing part of July’s improvement and extending this year’s soft trend.
• The downturn followed a weak August 1 jobs report and sweeping new tariffs, with headline inflation at 2.7% and an underlying measure ticking higher.
• The reading topped economists’ forecasts, and the index has hovered near the same level for the past three months.
• Hours before the report, President Trump moved to fire Fed Governor Lisa Cook; she said he lacks authority to do so and stated she will not resign.
• Fed Chair Jerome Powell called the policy backdrop “challenging,” said the Fed will proceed carefully, and hinted a rate cut could be considered if risks shift.