Hassett: CPI Data Shows Inflation Problem "Still Needs Work"

Odaily Report: National Economic Council Director Kevin Hassett stated that prices for goods such as beef and eggs have already declined, but September's consumer price data indicates that the overall inflation problem still requires policy attention. Hassett said: "If you look back over the past three months, inflation seemed to be completely under control, but now it appears to be picking up again and needs some intervention measures." He believes: "This is either a brief rebound in a downward trend, or just temporary volatility."

Hassett also stated that he respects the independence of the central bank, and said that Warsh would "do what he believes is right." Hassett said: "People are very optimistic about economic performance and are increasing spending. Of course, this is exactly what the Federal Reserve needs to pay attention to." (Jinshi)