Shoppers may notice relief in a few aisles. Kevin Hassett, Director of the White House National Economic Council, said prices have come down for items like beef and eggs.
But the broader picture looks hotter. Last week's report showed overall consumer prices climbed 0.6% in September, the quickest monthly increase in five months. A key underlying gauge that excludes food and energy rose 0.3% and topped expectations. "If you look at the previous three months, it looked like inflation was completely under control, and now it looks like it's sort of back needing some work," Hassett told CNBC on Monday. "This is either a sort of break from the downtrend or a blip."
Last week, Federal Reserve Chair Kevin Warsh left investors with little to challenge a pause, declining to say anything that would dispute expectations for holding rates steady when the Fed convenes later this month. At a moderated session during the IMF's annual meetings, he refrained from weighing in on policy or the outlook and underscored the Fed's goal of keeping prices stable.
According to Hassett, the Fed's independence deserves respect, and he added that Warsh will "do what he thinks is the right thing."
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Hassett also said "People are really euphoric about how well the economy is doing, and they're spending more. And of course, that's the kind of thing the Fed needs to pay attention to." Investors watch these data points closely because rate expectations influence how stocks and bonds are priced.
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