Fed Officials Weigh Faster Rate Hikes as Inflation Spreads Beyond Tariffs and Gas

U.S. inflation rose to 4% in October, up from 3.7% in September, signaling price increases are spreading beyond tariffs and gas shocks, prompting Federal Reserve officials to consider faster interest rate hikes that would make borrowing more expensive. Two Fed officials suggested Tuesday the central bank may accelerate rate increases, with Dallas Fed President Lorie Logan supporting two additional quarter-point hikes and possibly moving more rapidly this winter. Wall Street investors now see 90% odds of a hike at the December 8-9 meeting. October data showed broad price increases in services like childcare and dining, plus record jumps in smartphone and television costs. Fed officials expressed concern that inflation is persisting beyond temporary factors, though some still advocate only gradual increases.