U.S. Jobless Claims Surge Amid Inflation Concerns and Recession Fears

U.S. consumer prices rose more than expected in August, with a headline rate of 2.9% and core rate of 3.1%, surpassing the Federal Reserve's 2% target.
Despite inflation data, markets are focused on rising U.S. jobless claims, which hit 263,000 last week, the highest in nearly four years.
The 10-year Treasury yield dropped below 4% for the first time since April due to concerns over the labor market.
Crypto markets initially dipped but rebounded, with altcoins like Solana (SOL) up 11% and Dogecoin (DOGE) up 17% weekly.
XRP increased by 6.6% over the past week.
The data indicates potential stagflation risks, characterized by high inflation and stagnant growth.
Traders expect the Federal Reserve might prioritize economic growth over controlling inflation, possibly leading to an interest rate cut soon.
The economic outlook suggests complexities ahead as tariffs impact prices and employment.