WASHINGTON - U.S. small-business confidence fell in August, reversing the prior month's jump amid growing uncertainty ahead of the Nov. 5 presidential election and expectations of weak sales.
Economists had anticipated a reversal after Biden dropped out of the White House race and handed the baton to Vice President Kamala Harris. Trump and Harris are locked in a tight contest, and the stock market has been lackluster. Though business owners continued to worry about inflation, the share ticked down and fewer reported raising average selling prices. But labor shortages remain a challenge for small businesses, even as job openings in the nation have declined, resulting in a rise in the share of owners planning to raise compensation in the next three months.
The Federal Reserve is expected to cut interest rates next week, kicking off its easing cycle with a 25 basis points reduction. The U.S. central bank has kept its policy rate in the current 5.25%-5.50% range for more than a year, having raised it by 525 basis points in 2022 and 2023.Ukraine identifies Russian suspect in July attack on children's hospital