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Austan Goolsbee calls inflation report 'borderline disturbing' as Fed weighs more hikes
CNBC • • business
Key Points:
- Chicago Federal Reserve President Austan Goolsbee described the latest inflation data as "borderline disturbing," highlighting ongoing concerns about persistent inflation and its impact on consumers and businesses.
- The consumer price index rose 0.4% in October, surpassing economists' expectations and marking the third consecutive month of higher-than-anticipated price increases.
- Other Federal Reserve officials, including Christopher Waller and Lorie Logan, indicated the possibility of more aggressive interest rate hikes, with discussions of a potential half-point increase in December.
- Fed funds futures now unanimously expect a rate hike at the December meeting, with a 15% chance of a half-point increase and a 60% probability that rates will reach 4.25%-4.5% by January.
- Goolsbee expressed concern about the risk of inflation expectations becoming entrenched, which could complicate efforts to reduce inflation, but he refrained from committing to a specific rate decision for the upcoming Fed meeting.
