Latest News Updates From Christopher Rugaber

Prices remain elevated less than a week from midterm elections in which affordability concerns have become a central issue.

The Fed’s decision came just six days before a midterm election that has focused heavily on concerns around the cost of living and affordability.

A slew of economic data Oct. 15 showed that inflation accelerated last month as more expensive oil and gas began to lift prices in other parts of the economy.

The Labor Department’s producer price index — which captures inflation before it reaches consumers — soared 6.3% in September from a year ago, the biggest increase since December 2022.

The consumer price index rose 3.7% in September compared with a year ago, the Labor Department said Oct. 14, up from 3.4% in August. 

Consumer prices rose 3.4% in August compared with a year earlier, the Commerce Department said. On a monthly basis, prices climbed 0.3%, up from 0.1% in July, a sign prices are still running hot.

The quarter-point increase lifts the Fed’s key rate to about 3.9% and, over time, could result in higher borrowing costs for mortgages, auto loans and credit cards.

A quarter-point increase in the Fed's rate, currently about 3.6%, isn't guaranteed because Fed Chair Kevin Warsh doesn't provide the signals about next moves that his predecessors did.

The Labor Department said Sept. 11 that the consumer price index rose 3.4% last month compared with a year ago.

The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 5.4% in August from a year ago, up from 4.7% in July.