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Chicago Fed's Goolsbee says central bank 'has definitely got work to do' on inflation
CNBC • • business
Key Points:
- Chicago Federal Reserve President Austan Goolsbee expressed concern over recent inflation data, indicating the central bank likely needs to take further action to control rising prices.
- The producer price index rose 0.3% in October with a 6.5% annual increase, the highest since November 2022, while consumer price inflation also exceeded expectations, signaling persistent inflationary pressures.
- Goolsbee noted inflation has remained above the Fed’s 2% target for nearly six years, with recent trends showing inflation is worsening rather than improving.
- He highlighted that inflation persistence is driven by both supply shocks and demand overheating, particularly linked to AI data center expansion.
- Markets anticipate a 0.25% rate hike at the December Federal Open Market Committee meeting, with some possibility of a 0.5% increase; Goolsbee emphasized the Fed's future actions will depend on inflation trends.
