White House National Economic Council Director Kevin Hassett said inflation requires policy attention after September price data showed continued pressure. Federal Reserve Chairman Kevin Warsh, meanwhile, made no comments on monetary policy last week.
Kevin Hassett said Monday that inflation requires policy attention, even though prices have declined for some items including beef and eggs. The White House National Economic Council director pointed to September data that showed continued pressure.
September prices rise at the fastest pace in five months
The latest consumer price data showed prices rose in September at the fastest pace in five months. The consumer price index increased 0.6% from the previous month. A measure of underlying price pressures that excludes food and energy rose 0.3%, exceeding expectations.
Hassett told CNBC that the previous three months looked like inflation was completely under control, but "now it looks like it's sort of back needing some work". He added that the data is either a break from the downtrend or a blip.
Warsh stays silent on policy
Federal Reserve Chairman Kevin Warsh did not address market expectations last week that the central bank will keep interest rates unchanged at its meeting later this month. During a moderated discussion at the International Monetary Fund's annual meetings, he made no comments on monetary policy or his economic outlook beyond stating the Fed will deliver price stability.
Hassett said he respects the central bank's independence and noted Warsh will do what he thinks is the right thing. He also said people are euphoric about how well the economy is doing and are spending more, which is the kind of thing the Fed needs to pay attention to.
Source: Investing.com
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