Fed's Goolsbee calls October inflation report 'borderline disturbing'
Consumer prices rose 0.4% in October, more than economists expected, and Fed officials are weighing whether to raise rates again.
Chicago Fed President Austan Goolsbee called the latest inflation data "borderline disturbing" in an interview with PBS NewsHour. He said the consumer price index rose 0.4% in October on a seasonally adjusted basis, higher than economists had predicted and the third straight month of outsized increases. Goolsbee said price drivers such as tariffs had not faded as he had hoped, and he was concerned about persistently high service-sector inflation. Other Fed officials also signaled possible action. Governor Christopher Waller said a hot report could push him toward a half-point increase in December, and Dallas Fed President Lorie Logan said she sees a need for two more quarter-point hikes. Philadelphia Fed President Anna Paulson took a more measured view, saying further gradual tightening seemed appropriate. The Fed raised rates by a quarter point in September to a range of 3.75% to 4% and held them steady in October.
The Fed will weigh the data as it decides its next rate move.
Key points
- October CPI rose 0.4%, above economists' forecasts.
- It was the third straight month of outsized price increases.
- Fed officials are debating further rate hikes, including a possible half-point move.
- The Fed's current range is 3.75% to 4%.
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Summarized with AI from the sources above and reviewed before publishing.
