White House National Economic Council Director Hassett said he expects the Fed
would raise rates if October inflation prints hot, and that the policy response
will be clearer after this month’s CPI and PCE releases. His remarks followed
the latest PCE report showing September core PCE (ex-food and energy) +3.1% YoY
and headline PCE +3.6% YoY, both well above the Fed’s 2% target. Hassett said a
slowdown in October would suggest September was a short-term fluctuation. He
downplayed two FOMC dissents favoring a hike, praising Fed Chair Kevin Warsh’s
handling of dissent and saying committee decisions remain data-dependent; he
added he has no current concerns about the committee.
