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Federal Reserve Chair Kevin Warsh described today's decision as a 'hawkish skip' and emphasized that the job is not done on inflation. Warsh called the U.S. economy 'strong' but added that he does not think the economy is overheating. Heather Long reported that a December rate hike now seems very likely.
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Business inflation rose to 6.3 percent in September, exceeding expectations across all categories, as reported by Heather Long in an earlier article. Long has recently examined the drivers of higher bond yields in the U.S. and France, noting skepticism that strong growth alone is behind the increase in another report. These developments provide context for ongoing concerns about inflation and economic momentum.