Chicago Fed's Goolsbee Says Central Bank 'Has Definitely Got Work to Do' on Inflation
Markets now price in a quarter-point rate hike at the Fed's next meeting as officials warn inflation is broadening.
- On Friday, Chicago Federal Reserve President Austan Goolsbee warned that the central bank likely needs action to address persistent inflation, as Wall Street analysts expect the Federal Reserve to accelerate interest rate hikes.
- Data released earlier in the week showed the Consumer Price Index climbed 0.4% in October, while the producer price index posted a 6.5% annual gain, moving the Fed further from its 2% inflation target.
- Fed Governor Christopher Waller said on Tuesday that policymakers should consider a 0.50 percentage-point increase in December, adding that a smaller hike "would put our credibility at risk" as price pressures broaden.
- Interest rate traders put the odds of a quarter-point hike at the Fed's next meeting at nearly 90%, according to CME FedWatch, while EY-Parthenon economist Gregory Daco expects rate hikes for December and January.
- High energy prices and robust corporate spending on AI data centers could keep inflation elevated into 2027. "Together, these forces could keep inflation elevated into 2027 and weigh further on household purchasing power," Gregory Daco said in a report.
16 Articles
16 Articles
Chicago Fed's Goolsbee says on CNBC the Fed needs to guard against demand overheating
Chicago Fed president Austan Goolsbee stated that inflation has moved beyond temporary energy and tariff-related price shocks. He highlighted that increased demand from the AI buildout is pushing prices higher across many sectors including health care and services. Goolsbee emphasized the importance of upcoming inflation data for determining the Fed's rate increase pace. He noted that currently, there is no clear path back to the 2% inflation ta…
Inflation isn't going away. Here's what that means for interest rates
The Federal Reserve is likely to accelerate the pace of interest rate hikes to rein in , according to a growing number of Wall Street analysts. Aditya Bhave, a U.S. economist with BofA Global Research, expects monetary policymakers to raise the Fed's benchmark rate by 0.25 percentage points at…
His comments came after data showed that producer prices rose by 6.5% in October 2026 compared to the same month the previous year.
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