Fed's Goolsbee calls inflation report 'borderline disturbing' as central bank weighs more hikes
The consumer price index rose more than expected in October, raising alarm among Federal Reserve officials.
TL;DR
- Chicago Fed President Austan Goolsbee described the latest inflation data as 'borderline disturbing.'
- The October consumer price index rose 0.4%, exceeding economists' predictions for the third consecutive month.
- Goolsbee expressed concern over continuously high inflation on services and the potential for consumers and businesses to expect persistent price growth.
- Other Fed officials, including Christopher Waller and Lorie Logan, have indicated a need for more decisive action on interest rates.
- Fed Governor Waller suggested considering an outsized half-point increase if core CPI remains high.
- Dallas Fed President Logan sees a need for two additional quarter-point increases and potentially faster action.
- Fed funds futures now unanimously expect a rate hike at the December meeting.
- The market is divided on whether the December hike will be a quarter-point or a half-point increase.