The chair of the White House Council of Economic Advisers, Christopher (Chris) Phelan, argues that a 50-basis-point increase in the Fed’s funds rate is not warranted, despite recent inflation readings. Multiple reports say Phelan points to hot CPI data as context but cautions against jumping to such a large move.
Bloomberg and Econbrowser both describe Phelan’s position as contrary to other views represented by references to Waller and Logan, who are described as supporting a half-percentage point hike. Bloomberg also frames Phelan’s comments by acknowledging that the October CPI report is not a good number and that inflation has come in hot, while still maintaining that a large rate increase would be premature. Overall, the outlets emphasize different emphases—some highlight the size of the proposed hike and the debate around it, while others stress the justification for waiting for more evidence.
