Goolsbee Calls 0.4% October CPI Borderline Disturbing as Fed Weighs December Rate Hike
Updated
Updated · CNBC · Nov 11
Goolsbee Calls 0.4% October CPI Borderline Disturbing as Fed Weighs December Rate Hike
3 articles · Updated · CNBC · Nov 11
Summary
Austan Goolsbee said October inflation was “another distressing report — borderline disturbing,” warning the Fed faces a real and developing price problem after CPI rose 0.4%, above forecasts.
Tariffs that have not faded as hoped, persistently high services inflation and the risk that households and businesses start expecting faster price growth are driving his concern, he said.
Fed officials are already shifting toward tighter policy: Christopher Waller said a 0.3% core CPI could justify a half-point December hike, while Dallas Fed President Lorie Logan backed two more quarter-point increases and possibly a faster pace this winter.
Fed funds futures now fully price in a December hike, with 15% odds of a half-point move; markets put a 60% chance on rates reaching 4.25%-4.5% by January.