Core CPI Rises Faster Than Expected in August, Raising Prospect of Fed Rate Increase
Source Summary
Core CPI increased 0.3% in August, exceeding forecasts. Fed Chair Kevin Warsh stated two weeks prior that the central bank may need to act if inflation does not slow soon. The report has gained heightened significance in light of these comments.
Why it matters
Faster-than-expected core inflation combined with the Fed Chair's recent warning about potential policy action raises the likelihood of an interest rate increase.
