US Fed weighs another rate hike after hot October inflation data

The US Federal Reserve is preparing for a potential new interest rate hike following concerning October inflation data, with officials signaling a possible aggressive tightening at the December meeting. Chicago Fed President Austan Goolsbee called the latest consumer price data "bordering on alarming" after October's CPI rose 0.4%, exceeding expectations. Fed Governor Christopher Waller suggested a possible half-point increase, while Dallas Fed President Lorie Logan indicated two more quarter-point steps are needed. In September, the Fed raised rates by a quarter point to 3.75%-4%, pausing in October. Goolsbee warned that entrenched inflation expectations among consumers and businesses pose the main threat to economic stabilization.