Goolsbee Warns Fed Has Work to Do as October PPI Hits 6.5%
Updated
Updated · CNBC · Nov 13
Goolsbee Warns Fed Has Work to Do as October PPI Hits 6.5%
3 articles · Updated · CNBC · Nov 13
Summary
Austan Goolsbee said the Fed is losing ground against inflation and must act to restore credibility, after fresh data showed prices are moving further from the 2% target.
October producer prices rose 0.3% from the prior month and 6.5% from a year earlier—the fastest annual gain since November 2022—following a hotter-than-expected CPI reading earlier this week.
Goolsbee said inflation has stayed above 2% for nearly six years and is now being reinforced not just by lingering supply effects but by demand overheating tied to AI data-center construction.
Markets now fully price in a 25-basis-point hike at the Fed's Dec. 8-9 meeting, with better than a 10% chance of a 50-basis-point move after Governor Christopher Waller said he could consider a larger increase.