TIMIRAOS said September core CPI (ex-food and energy) rose 0.33% MoM, above
nearly all Wall Street forecasts and up from 0.29% in August, marking a second
consecutive month of stronger-than-expected inf. He said the report reinforces
the case for the Federal Reserve to raise rates again this year; Fed officials
unanimously voted to hike last month and most had expected one more increase in
the year. The release raises two policy questions: whether officials can wait
until December to act after saying they do not expect to change rates at the
meeting in two weeks, and how high policy rates ultimately need to go — a
judgment that depends on whether rising energy costs and AI-driven investment
pressures spread into the broader economy. Officials have not signaled they
would revise plans based on a single report.
