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PPI inflation August 2025:

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People shop for dairy products at a supermarket in Monterey Park, California on September 9, 2025.

Frederic J. Brown | Afp | Getty Images

Wholesale prices surprisingly fell slightly in August, providing breathing room for the Federal Reserve to approve an interest rate cut at its meeting this month, according to a Bureau of Labor Statistics report Wednesday.

The producer price index, which measures input costs across a broad array of goods and services, dropped 0.1% for the month, after a downwardly revised 0.7% increase in July and well off the Dow Jones estimate for a 0.3% rise. On a 12-month basis, the headline PPI saw a 2.6% gain.

The core PPI, which excludes volatile food and energy prices, also was off 0.1% after being expected to climb 0.3% as well. Excluding food, energy and trade, the PPI posted a 0.3% gain and was up 2.8% from a year ago.

Stock market futures gained after the release while Treasury yields were slightly negative.

The release comes a week ahead of when the central bank’s Federal Open Market Committee releases its decision on its key overnight borrowing rate.

Futures market pricing implies a 100% probability that the committee will approve its first rate cut since December 2024, though the PPI release and a consumer price reading Thursday are being watched closely for indications of whether policymakers will follow through. Odds for a larger half percentage point reduction increased slightly after the PPI release to about 10%, according to the CME Group’s FedWatch gauge.

Services prices, a key metric for the Fed when evaluating the stance of monetary policy, posted a 0.2% drop, helping drive wholesale inflation lower. A 1.7% slide in prices for trade services was the primary impetus, with margins for machinery and vehicle wholesaling tumbling 3.9%.

Goods prices did increase, but just 0.1% as core prices rose 0.3%. While final demand food costs were up 0.1%, energy was off 0.4%.

“Net, net, the inflation shock that was not is rocketing markets higher as inflation barely has a heartbeat at the producer level which shows the tariff effect is not boosting across-the-board price pressures yet,” said Chris Rupkey, chief economist at Fwdbonds. “There is almost nothing to stop an interest rate cut from coming now.”

Though inflation remains well above the Fed’s 2% target, officials have expressed confidence that easing housing and wage pressures will push prices lower, if only gradually.

The Fed has resisted rate cuts this year as officials monitor the impact from President Donald Trump‘s aggressive tariffs against U.S. imports. Tariffs historically have not been a lasting cause of inflation, but the broad-based nature of Trump’s moves have raised concern that this episode could be different.

Tobacco products, which are impacted by tariffs, jumped 2.3% in August. Portfolio management costs, a significant factor in the July increase, rose 2% after climbing 5.8% the prior month.

For his part, Trump has badgered the Fed to reduce rates, insisting that tariffs will not be inflationary and the economy needs lower rates both to spur growth and to cap financing costs for the swelling national debt.

Concerns have been rising at the Fed over the employment picture while inflation fears have abated. A BLS report Tuesday indicating that the economy created nearly 1 million fewer jobs than initially reported in the year preceding March 2025 raised worries that the labor market is in trouble even as Fed officials consistently have characterized the picture as “solid.”

The Fed meeting next week will feature both a rate decision and an update on where officials see the economy and interest rates headed in the future.

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Texas A&M fires professor amid gender identity teaching backlash

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HOUSTON (AP) — A professor at Texas A&M University was fired and others were removed from their positions after a video surfaced in which a student confronted the instructor over her teaching of issues related to gender identity in a class on children’s literature.

The firing of Melissa McCoul, a senior lecturer in the English department with over a decade of teaching experience, came after political pressure from Republican lawmakers, including Gov. Greg Abbott, who had called for her termination.

The incident prompted Glenn Hegar, the chancellor of the Texas A&M University System, to order an audit of courses at all 12 schools in the system.

“It is unacceptable for A&M System faculty to push a personal political agenda,” Hegar said in a statement on Monday. “We have been tasked with training the next generation of teachers and childcare professionals. That responsibility should prioritize protecting children not engaging in indoctrination.”

In an email, McCoul referred all questions to her attorney, Amanda Reichek. Reichek said in a statement that McCoul has appealed her termination and “is exploring further legal action.”

“Dr. McCoul was fired in derogation of her constitutional rights and the academic freedom that was once the hallmark of higher education in Texas,” Reichek said.

Texas A&M University President Mark A. Welsh III said in a statement Tuesday he directed the campus provost to fire McCoul after learning the instructor had continued teaching content in a children’s literature course “that did not align with any reasonable expectation of standard curriculum for the course.”

Welsh said the issue had been raised earlier this summer and he had “made it clear to our academic leadership that course content must match catalog descriptions for each and every one of our course sections.” Welsh said he learned on Monday that this was not taking place.

“This isn’t about academic freedom; it’s about academic responsibility,” Welsh said.

In her statement, Reichek pushed back on Welsh’s claims that McCoul’s teaching did not match the course description.

“Professor McCoul’s course content was entirely consistent with the catalog and course description, and she was never instructed to change her course content in any way, shape, or form,” Reichek said. “In fact, Dr. McCoul taught this course and others like it for many years, successfully and without challenge.”

Welsh also ordered the removal of the dean of the College of Arts and Sciences and the head of the English Department from their administrative positions.

The actions by Texas A&M were criticized by faculty and writers’ groups.

“We are witnessing the death of academic freedom in Texas, the remaking of universities as tools of authoritarianism that suppress free thought,” Jonathan Friedman, Sy Syms Managing Director of U.S. Free Expression Programs at PEN America, said in a statement.

The Texas chapter of the American Association of University Professors said what happened at Texas A&M University should concern every Texan.

“Not only has the integrity of academic freedom come under fire, but the due process rights of a faculty member have been trampled at the urging of state politicians + the governor himself,” the group said in a statement.

The controversy began on Monday after Republican state Rep. Brian Harrison posted a video, audio recordings and other materials on a thread on the social media site X. Harrison called for the professor and Welsh to be fired for “DEI and LGBTQ indoctrination.”

In one video, a female student and the professor can be heard arguing over gender identity being taught in a children’s literature class. The student and professor are not shown and it’s unclear when the video was taken.

“This also very much goes against not only myself but a lot of people’s religious beliefs. And so I am not going to participate in this because it’s not legal and I don’t want to promote something that is against our president’s laws as well as against my religious beliefs,” the student could be heard saying in the video.

“If you are uncomfortable in this class you do have the right to leave. What we are doing is not illegal,” the professor said.

In her back-and-forth with the professor, the student mentioned an executive order that President Donald Trump signed earlier this year in which he said “it is the policy of the United States to recognize two sexes, male and female.”

A Texas law took effect on Sept. 1 that forbids Texas K-12 schools from teaching about sexual orientation or gender identity. The law does not apply to universities and other institutions of higher education.

Texas A&M is located in College Station, about 95 miles (153 kilometers) northwest of Houston.

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Follow Juan A. Lozano: https://x.com/juanlozano70





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Charlie Kirk: Trump ally shot dead at campus event in Utah

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Pelosi and Giffords react to Kirk’s shootingpublished at 21:03 British Summer Time

US politicians are sharing their shock after the shooting of Charlie Kirk.

Congresswoman Nancy Pelosi, a Democrat, says she is praying for Kirk’s recovery.

“Political violence has absolutely no place in our nation.

All Americans should pray for Charlie Kirk’s recovery and hold the entire UVU community in our hearts as they endure the trauma of this gun violence,” she wrote on X.

Former US representative Gabby Giffords also posted, condemning violent responses to political differences. In 2011, Giffords was shot in the head during a meeting with constituents in a grocery store parking lot. She survived, but resigned from office due to a brain injury.

“Democratic societies will always have political disagreements, but we must never allow America to become a country that confronts those disagreements with violence,” she said.



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Past life on Mars? NASA rover finds strongest hints yet in Martian rocks

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CAPE CANAVERAL, Fla. (AP) — NASA’s Mars rover Perseverance has uncovered rocks in a dry river channel that may hold potential signs of ancient microscopic life, scientists reported Wednesday.

They stressed that in-depth analysis is needed of the sample gathered there by Perseverance — ideally in labs on Earth — before reaching any conclusions.

While acknowledging the latest analysis “certainly is not the final answer,” NASA’s science mission chief Nicky Fox said it’s ”the closest we’ve actually come to discovering ancient life on Mars.”

Roaming Mars since 2021, the rover cannot directly detect life, past or present. Instead, it carries a drill to penetrate rocks and tubes to hold the samples gathered from places judged most suitable for hosting life billions of years ago. The samples are awaiting retrieval to Earth — an ambitious plan that’s on hold as NASA seeks cheaper, quicker options.

Calling it an “exciting discovery,” a pair of scientists who were not involved in the study — SETI Institute’s Janice Bishop and the University of Massachusetts Amherst’s Mario Parente — were quick to point out that non-biological processes could be responsible.

“That’s part of the reason why we can’t go so far as to say, ‘A-ha, this is proof positive of life,’’’ lead researcher Joel Hurowitz of Stony Brook University told The Associated Press. “All we can say is one of the possible explanations is microbial life, but there could be other ways to make this set of features that we see.”

Either way, Hurowitz said it’s the best, most compelling candidate yet in the rover’s search for potential signs of long-ago life. It was the 25th sample gathered; the tally is now up to 30. The findings appeared in the journal Nature.

“It would be amazing to be able to demonstrate conclusively that these features were formed by something that was alive on another planet billions of years ago, right?” Hurowitz said. But even if that’s not the case, it’s “a valuable lesson in all of the ways that nature can conspire to fool us.”

Collected last summer, the sample is from reddish, clay-rich mudstones in Neretva Vallis, a river channel that once carried water into Jezero Crater. This outcrop of sedimentary rock, known as the Bright Angel formation, was surveyed by Perseverance’s science instruments before the drill came out.

Along with organic carbon, a building block of life, Hurowitz and his team found minuscule specks, dubbed poppy seeds and leopard spots, that were enriched with iron phosphate and iron sulfide. On Earth, these chemical compounds are the byproducts when microorganisms chomp down on organic matter.

“There is no evidence of microbes on Mars today, but if any had been present on ancient Mars, they too might have reduced sulfate minerals to form sulfides in such a lake at Jezero Crater,” Bishop and Parente wrote in an accompanying editorial.

There’s no evidence of present-day life on Mars, but NASA over the decades has sent spacecraft to Mars in search of past watery environments that might have supported life way back when.

When Perseverance launched in 2020, NASA expected the samples back on Earth by the early 2030s. But that date slipped into the 2040s as costs swelled to $11 billion, stalling the retrieval effort.

Until the samples are transported off of Mars by robotic spacecraft or astronauts, scientists will have to rely on Earthly stand-ins and lab experiments to evaluate the feasibility of ancient Martian life, according to Hurowitz.

NASA’s acting Administrator Sean Duffy said budgets and timing will dictate how best to proceed, and even raised the possibility of sending sophisticated equipment to Mars to analyze the samples on the red planet. “All options are on the table,” he said.

Ten of the titanium sample tubes gathered by Perseverance were placed on the Martian surface a few years ago as a backup to the rest aboard the rover, all part of NASA’s still fuzzy return mission.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.





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