Reviewed by: Lacey Muenstermann
How interest rates + tariffs are affecting inflation + more business news
Reading time: 4 minutes
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Is inflation tied to any one specific issue? Some will blame tariffs, others point to interest rates, government spending or any one of a number of potential culprits for the current state of inflation. We spoke to one local expert who has an answer.
Read on to learn more about his analysis and get the latest on Huntsville’s unemployment numbers.
What’s affecting inflation here in the U.S.?
The entire country is still feeling the effects of worldwide inflation, sparked by the COVID-19 pandemic and its subsequent effects on the global economy. However, the U.S. has slowly pulled itself out of the hole it was in just a few years ago.
We spoke with Dr. Jason Imbrogno, Associate Professor of Economics at the UNA Sanders College of Business & Technology about what is still causing inflation, and how we will weather the storm in the coming year. Much of that, however, is still unknown.
What we do know about inflation right now is that it has been trending down over the past few years, and is currently holding steady slightly above the Fed’s target of 2%.
Imbrogno said he sees some misconceptions in regard to the root of inflation here in the U.S. Namely, tariffs are frequently cited as a cause of inflation right now but Imbrogno said the micro data (i.e., looking at the prices of tariffed goods paid by consumers) does not support that conclusion.
Additionally, Imbrogno said immigration, DOGE, government spending and other common culprits cited by the public are not nearly as big a player in inflation as interest rates are.
“Contrary to what the president has been advocating, I think that interest rates are too low right now and that’s the biggest problem with getting inflation back under the target.”
Dr. Jason Imbrogno, Associate Professor of Economics, UNA Sanders College of Business & Technology
Imbrogno said lowering interest rates does not lower inflation, and added that he believes rates will remain “somewhere between 2.5 and 3.5% for the next few years.”
“I believe the Fed has ‘quietly’ revised its target to that level and will adjust interest rates as necessary to keep within that window.”
Dr. Jason Imbrogno, Associate Professor of Economics, UNA Sanders College of Business & Technology
Fifth Third Bank enters Huntsville market
Cincinnati-based Fifth Third Bank officially entered the Huntsville market with the opening of the first retail branch for the bank in Alabama.
The Alabama debut is part of Fifth Third’s expansion strategy, which accelerated dramatically in late 2024 when the bank announced plans to open 200 new retail locations by 2028, primarily in fast-growing Southeast markets.
The growth strategy originally focused on Tennessee, Georgia, the Carolinas and Florida, and now includes Alabama.
The new Huntsville branch is Fifth Third Bank’s first of 15 financial centers planned across Alabama over the next three years, with 10 in Huntsville and five in Birmingham.
“Huntsville is the perfect launch pad for our entry into Alabama, given the community’s emphasis on innovation. We’re excited to welcome new customers and embed ourselves in the fabric of the local community. By striking a deliberate balance between forward-thinking innovation and deep community investment, we aim to build a stable foundation where progress benefits everyone.”
Shawn Niehaus, head of consumer banking at Fifth Third Bank
The new branch also brings approximately 80 new jobs for for roles in branches, asset management, mortgage delivery and support.
Fifth Third Bank’s Huntsville branch is located at 5903 University Dr NW, Huntsville, AL 35806.
Huntsville, Madison + Athens post low unemployment rates for June
While the state unemployment rate in June would not be considered “high” by nationwide standards (the national unemployment rate stands at 4.1%), Alabama’s rate is still higher than it was this time last year (2.9%) and two years ago (2.3%).
However, Huntsville has remained below the state average, along with neighboring cities Madison, Athens and Decatur.
Here’s where unemployment rates stand in Huntsville and surrounding cities:
| City | June 2025 Unemployment Rate | May 2025 Unemployment Rate | June 2024 Unemployment Rate |
| Athens | 2.5% | 2.3% | 2.5% |
| Decatur | 2.7% | 2.5% | 2.9% |
| Florence | 3.5% | 3.0% | 3.6% |
| Huntsville | 2.7% | 2.5% | 2.9% |
| Madison | 2.3% | 2.0% | 2.5% |
Here’s a look at Madison County and its neighboring counties in June:
| County | June 2025 Unemployment Rate | May 2025 Unemployment Rate | June 2024 Unemployment Rate |
| Jackson | 3.4% | 3.2% | 3.6% |
| Limestone | 2.5% | 2.3% | 2.6% |
| Madison | 2.6% | 2.3% | 2.7% |
| Marshall | 2.6% | 2.4% | 2.8% |
| Morgan | 2.5% | 2.3% | 2.7% |
Learn more about how the University of North Alabama’s Sanders College of Business & Technology can help move you through your career path!
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