Hassett says inflation “needing some work”

White House National Economic Council Director Kevin Hassett commented on Monday that inflation still requires policy attention following September consumer price data which showed ongoing pressure, despite certain goods experiencing price reductions, such as beef and eggs. According to Hassett, who spoke with CNBC Monday, the inflation issue appeared to be completely under control over the past three months but now seems to need some work.

The consumer price index experienced a 0.6% increase from the previous month in September, marking the fastest pace in five months. A measure of underlying price pressures that excludes food and energy rose by 0.3%, surpassing analysts' expectations. Hassett noted that this trend could either be a return to the downtrend or a temporary fluctuation.

Federal Reserve Chairman Kevin Warsh did not address market expectations regarding the central bank's decision on interest rates during its meeting later in the month in an interview at the International Monetary Fund’s annual meetings. Warsh merely stated that the Fed's primary focus is on achieving price stability. Hassett expressed respect for the central bank's independence and mentioned that Warsh will "do what he believes is the right thing."

Hassett highlighted the euphoria surrounding the economy's performance and the increased spending by people, acknowledging that the Fed must take this into account.