Federal Reserve

A new jobs report showed a modest slowdown in hiring last month that was not enough to soothe Wall Street's worries about inflation and the Fed. The unemployment rate edged down to 3.5%

Customarily, the Fed and other central banks do as much as they can to keep markets calm. This time they're the reason behind the volatility.

The Federal Reserve is cracking down hard on inflation, in hopes of avoiding a repeat of the 1970s, when price hikes were so sustained, they got baked in to people's thinking.

Inflation eased slightly in August thanks to falling gasoline prices, but the cost of many essentials continues to climb, including soaring power bills that are straining family budgets.

Falling gasoline prices put a dent in the July inflation rate, which fell to 8.5% from 9.1% in June. But other costs such as housing continue to climb, putting a strain on many family budgets.