CPI Rises Above Fed Target, Giving Ammo To Hawks

I've already stated that I think even a December interest rate hike is not a certainty but today's release of the Consumer Price Index will probably give the hawks some more ammunition. The median CPI and the trimmed-mean CPI both rose last month to a 2.1% annual rate which is above the Fed's target of 2%. I'm sure we can hear about an overheating economy and runaway inflation from the Fed hawks over the next few weeks as they posture for the December rate hike. Among the actual voting member of the FOMC, however, it appears that the consensus is to see whether they can still bring more people back into the working force before they start raising rates. There's still plenty more data to see before the December meeting, leaving the committee members plenty of time to jawbone for their preferred outcome.