Chicago Fed President Austan Goolsbee said September was “a disappointing month for inflation”, while adding he remained optimistic “if inflation drivers fade soon”. He also said that if prices are rising because demand is overheating due to AI, that “must be addressed”.
US Economic Data and Fed Rate Outlook
This week’s US CPI and PPI readings supported the case for a potential Federal Reserve rate rise at the 27-28 October meeting. Markets were pricing a 25% chance of a hike, down from 40% a day earlier after the CPI release.
