Director of the White House National Economic Council, Hassett, stated that while beef and egg prices have decreased, consumer price data for September shows that overall inflation issues still require policy attention. If inflation rebounds, intervention measures are needed. Hassett respects the independence of the central bank and says that Federal Reserve Chairman Kevin Walsh will do the right thing. People are increasing their spending, which is an issue that the Federal Reserve needs to pay attention to. (Source: Jin Shi)
AI interpretation: The rebound in September inflation data clearly reveals the stubborn characteristics of price stickiness, completely breaking the market's illusion of a stable decline in inflation. The continued expansion of consumer spending has further intensified the inflationary pressure on the demand side, forcing the Federal Reserve to maintain a tightening stance to curb uncontrolled prices. The intervention pressure faced by policy makers has significantly increased, and the high interest rate environment will be locked in for the long term as a result. This situation directly negates the rationality of a short-term shift towards loose monetary policy, and the market must reprice a more stringent interest rate path.
