Chicago Fed President Austan Goolsbee just called the September CPI print "discouraging" in a Yahoo Finance interview

He said services inflation was a concern and that more bad months of inflation would be "unacceptable"

If current inflation levels hold, he added that policy would need to address that

Goolsbee also said the economy has work to do on the inflation side, while he is not hearing recession worries from contacts

He flagged that AI hype could drive even more tech sector investment and risk overheating

Prediction markets still lean toward a hold at the Oct 27-28 meeting, with Kalshi near a 35% chance of a hike after this morning's hotter core CPI

September CPI came in at 3.7% headline and 2.6% core. Goolsbee is not a 2026 voter, but a Chicago Fed president saying another string of hot prints would force a policy response is the clearest hawkish signal since the data hit. The path into Oct 28 is about whether services cool, not whether the Fed has forgotten about 2%.

Source: StockMarket.News