Goolsbee Calls October Inflation Concerning as Price Index Rises 0.4%
Key Facts
Austin Goolsbee, president of the Federal Reserve Bank of Chicago, described U.S. inflation data for October as "very concerning" in an interview with PBS NewsHour published on November 10, 2026. His comments came on a day when Bureau of Labor Statistics data showed the Consumer Price Index for All Urban Consumers rose 0.4% month over month, after a 0.6% increase in September. Goolsbee said he was particularly concerned that services inflation was not declining, warning that inflation expectations could become entrenched in the economy. The warning puts the composition of prices, alongside the overall increase, at the center of debate over the monetary policy path. Goolsbee did not commit in advance to raising or cutting interest rates at the next meeting, leaving the decision open to the data.
The index excluding food and energy rose 0.3% in October, the same monthly increase recorded in August and September. The same pace over three months indicates that pressures in this measure did not ease in October, despite the slowdown in the headline index compared with the previous month. Among the components of the headline index, shelter rose 0.3%, accounting for more than 30% of the overall monthly increase. The food index rose 0.5%, while the energy index increased 0.7% during the month. These components highlight the breadth of sources of price increases, with shelter contributing more than 30% of the rise in the headline index.
In markets, the S&P 500 fell 0.4% on Tuesday, while the Dow Jones dropped 157 points, or 0.3%, and the Nasdaq declined 0.7%. The Associated Press linked the stock moves to a report showing inflation was higher than economists expected. The yield on the 10-year U.S. Treasury note rose to 4.99%, from 4.88% late Monday. Bond and stock moves came amid a broader debate over what the price data could mean for the Fed's next decision. Christopher Waller said the Fed should consider raising its policy rate by half a percentage point in December if the core inflation measure he identified showed a 0.3% increase compared with September; that was a condition Waller set out, not a decision announced by the committee.
Goolsbee is scheduled to appear on November 12, according to the available events calendar, which did not specify that his appearance would be a formal speech. This comes ahead of the Federal Open Market Committee meeting scheduled for December 8 and 9, 2026. A new reading on prices will be available before the meeting, with the November Consumer Price Index report due on December 10 at 8:30 a.m. Eastern time. The report will therefore be released after the December meeting concludes, according to the announced schedule. The committee meeting remains the next monetary policy decision on the calendar, while price data and officials' comments remain part of the surrounding context.