Fed's Goolsbee calls inflation report 'borderline disturbing' as rate hike odds rise

Federal Reserve official Austan Goolsbee called October's inflation report "borderline disturbing," signaling growing alarm as the central bank weighs further interest rate hikes to combat persistent price increases. The consumer price index rose 0.4% in October, exceeding economist forecasts, with Goolsbee noting tariffs and high services costs have not faded as hoped. Fellow Fed officials Christopher Waller and Lorie Logan suggested more aggressive rate increases may be needed, including a potential half-point hike in December. Fed funds futures now unanimously expect a rate hike at December's meeting, with 15% odds of a half-point increase. Goolsbee, a voting member next year, declined to specify his preferred action, citing concerns about entrenched inflation expectations.