Another hot consumer price index (CPI) reading for September means the Federal Reserve will continue to aggressively tighten monetary policy for the time being. Following the latest inflation data, Bank of America economist Michael Gapen said the chances of at least two more 0.75% Fed interest rate hikes are rising as the central bank fights to avoid a dreaded wage-price spiral that could get out of control.
The Numbers: On Thursday, the U.S. Labor Department reported the consumer price index gained 8.2% in September, exceeding economist estimates of 8.1%. Core CPI inflation, which excludes volatile food and energy prices, was up 6.6% compared to economist estimates of 6.5%.
