The Federal Reserve's microphone, named Nick Timiraos, published an article stating that the US core inflation in September exceeded expectations for the second month in a row, further strengthening the reason for the Federal Reserve to raise interest rates once more during the year. When Federal Reserve officials voted unanimously to raise interest rates last month, almost all officials predicted another rate hike this year in their interest rate predictions. The US core consumer price index for September, which excludes food and energy prices, rose 0.33% month-on-month, higher than almost all Wall Street economists' predictions, and rose 0.29% in August. This inflation report poses two problems for Federal Reserve officials. First, the more pressing question is whether the Federal Reserve still has room to wait until December to raise interest rates. Earlier, Federal Reserve officials sent a signal that interest rates are not expected to be adjusted at the policy meeting two weeks from now. Some analysts believe there isn't much reason to keep waiting if Federal Reserve officials have anticipated further interest rate hikes. However, there is currently no indication that officials will reconsider recent policy arrangements because of a separate inflation report. Second, and more important, is how high interest rates will eventually need to rise. This will depend on whether inflationary pressure from rising energy prices and the boom in artificial intelligence investment is spreading to the wider economy.

The Federal Reserve's microphone, named Nick Timiraos, published an article stating that the US core inflation in September exceeded expectations for the second month in a row, further strengthening the reason for the Federal Reserve to raise interest rates once more during the year. When Federal Reserve officials voted unanimously to raise interest rates last month, almost all officials predicted another rate hike this year in their interest rate predictions. The US core consumer price index for September, which excludes food and energy prices, rose 0.33% month-on-month, higher than almost all Wall Street economists' predictions, and rose 0.29% in August. This inflation report poses two problems for Federal Reserve officials. First, the more pressing question is whether the Federal Reserve still has room to wait until December to raise interest rates. Earlier, Federal Reserve officials sent a signal that interest rates are not expected to be adjusted at the policy meeting two weeks from now. Some analysts believe there isn't much reason to keep waiting if Federal Reserve officials have anticipated further interest rate hikes. However, there is currently no indication that officials will reconsider recent policy arrangements because of a separate inflation report. Second, and more important, is how high interest rates will eventually need to rise. This will depend on whether inflationary pressure from rising energy prices and the boom in artificial intelligence investment is spreading to the wider economy.