Chicago Fed chief calls October CPI rise ‘borderline disturbing’ amid rate‑hike debate

Chicago Federal Reserve President Austan Goolsbee said the October consumer price index jump was “borderline disturbing,” underscoring growing inflation concerns as the Fed weighs additional rate moves, CNBC reported.

What did the October CPI data reveal?

It showed a 0.4% seasonally adjusted increase in October, marking the third consecutive month of outsized price gains and surpassing economists’ expectations, according to the Bureau of Labor Statistics release cited by CNBC.

How are Federal Reserve officials responding?

Goolsbee described the report as “distressing” and noted that price drivers such as tariffs have not faded, while persistent service‑inflation worries him; Fed Governor Christopher Waller said a hot reading could push him toward a half‑point hike in December if core CPI sits around 0.3%, and Dallas Fed President Lorie Logan said she sees a need for two more quarter‑point hikes and a potentially faster pace this winter, CNBC added.

What do markets indicate about upcoming rate decisions?

Fed funds futures now price in a December rate hike, with a 15% chance of a half‑point increase and a 60% probability that rates will sit between 4.25%‑4.5% by the January meeting, while odds of reaching 4.5%‑4.75% sit at about 10%, according to CME’s FedWatch tool referenced by CNBC.