US Inflation Data Stokes Fed Rate Hike Bets

US inflation data has come in hotter than expected for back-to-back months, casting doubt on the Federal Reserve's ability to let interest rates stand still. The latest reading shows core consumer price inflation rose 0.3% last month from the previous month, exceeding economists' predictions of a 0.2% increase.

The Bureau of Labor Statistics reported that core CPI, a key measure of underlying inflation, rose 2.4% from a year earlier, while overall consumer inflation measured 3.4%. These numbers set the stage for an interest-rate hike at the Federal Reserve's meeting next week and potentially more to follow.

Fed Chair Kevin Warsh is under pressure to take action as inflation continues to fail to cool down. Some are calling on him to 'put up or shut up' after months of waiting for price pressures to ease on their own.