The Real Economy: September 2025

Sharp changes in trade policy and the potential for another round of elevated inflation demand a look at how the interaction of fiscal and monetary policy can lead to persistent inflation.

With inflation rising and expansionary fiscal policies about to kick in, the Federal Reserve faces a challenge in setting its monetary policy over the near term, writes RSM Chief Economist Joe Brusuelas in the September issue of The Real Economy.

But with the labor market continuing to deteriorate in the August jobs report, a rate cut at the central bank’s next meeting on Sept. 17 became all but certain, Brusuelas writes.

Also in this issue, RSM’s Mike Graziano assesses the state of the mergers and acquisitions market in consumer products and finds that it remains subdued despite expectations of increased deal flow.

Finally, in our Market Minute series, Brusuelas looks at indicators of a global economy in transition, from rising electricity prices and tepid residential investments in the U.S. to the $12 trillion repo market that makes de-dollarization improbable.

Read our team’s analysis of these topics in the latest edition of The Real Economy.