A Federal Reserve official who has favored aggressive rate increases this year said he would favor a 0.75-percentage-point rate rise at the central bank’s meeting in two weeks—though stronger economic data between now and then could tip the scale in favor of an increase of a full percentage point.
The Labor Department reported Wednesday that inflation rose to 9.1% in June from a year before, the fastest pace in more than 40 years. The consumer-price index revealed a broadening in price pressures even after accounting for large gains in food and energy prices last month.
