Entrenched US Inflation Piles Pressure on Fed and the World
- Core prices in September rose at fastest pace in 40 years
- Fed seen ramping up rate hikes, risking global recession
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Inflation is spreading deeper into the US economy, slamming the door on hopes the Federal Reserve will dial back interest-rate hikes that threaten to tip the country and perhaps the world into recession.
Core inflation, excluding food and energy, jumped to a 40-year high of 6.6% in September from a year ago -- outpacing forecasts and triggering a slide in US bond markets, as investors bet that the Fed will be forced into two more 75 basis-point increases this year.