Fed's Goolsbee (2027 voter) says a hotter-than-expected reading on Sept inflation is “discouraging" but wants to wait for more data before taking action to raise rates higher

INFLATION Found the latest inflation data "discouraging", adding that last month's data was also discouraging. "We need to get more data." If the underlying trend in inflation is 4% core inflation, that is "not acceptable", is not compatible with the Fed's target, and policy needs to address it. The 4% figure refers to the annualised pace of September's monthly core inflation reading. Concerned about services inflation, which is showing little sign of improvement and remains above 5%. Higher services inflation cannot be attributed to tariffs or higher oil prices. Core goods inflation remains above 3% and should have declined as tariffs worked their way through, but it has not, suggesting more persistent inflation. Remains among the more "optimistic folks" at the Fed regarding how much progress can be made on inflation over the next year. MONETARY POLICY Asked whether current interest rates are sufficiently restrictive to return inflation to 2%, or whether further hikes are needed, said "I don't think we yet know the answer to that." "If we get more months like this … that's totally unacceptable." ECONOMY The AI data centre build-out warrants close monitoring due to its potential to overheat the economy. Hearing widespread concerns about costs and prices across his Midwestern district. "There's very little that we're hearing that sounds like downturn, risks of recession, and things like that." The lack of recessionary signals makes him more concerned about demand-side overheating than a straightforward supply shock.