Chicago Fed President Goolsbee Warns Inflation is Moving Away From 2% Target
Chicago Fed President Austan Goolsbee expressed significant concern regarding recent inflation data, stating that the central bank is slipping further away from its 2% target. He noted that while progress was made previously, current trends suggest inflation is becoming more persistent and potentially spreading due to demand overheating linked to AI data center expansion. The remarks follow reports showing a 6.5% annual gain in the producer price index (PPI) for October and higher-than-expected consumer price index (CPI) figures. Goolsbee emphasized that the Federal Reserve must work to reestablish its credibility as inflation proves more stubborn than initial supply shock predictions suggested. Market reactions reflect growing expectations for tighter monetary policy. According to the CME Group's FedWatch gauge, markets are currently pricing in a 25-basis point rate hike for the December 8-9 FOMC meeting, with a greater than 10% probability of a 50-basis point increase.
Tickers: $CME
Topics: Consumer Price Index Federal Reserve Inflation Interest Rates Producer Price Index
Part of the story Chicago Fed President Goolsbee Expresses Concern Over Rising Inflation Data (5 articles)