Fed's Goolsbee calls inflation report 'borderline disturbing' as central bank weighs more hikes

Federal Reserve Chair Goolsbee’s characterization of the latest inflation report as "borderline disturbing" signals a hawkish tilt that could translate into additional rate hikes. For middle-market credit investors, this heightens the risk of tighter financial conditions and increased borrowing costs. Leveraged loans and bonds may face pressure as refinancing becomes more expensive, and companies with weaker credit profiles could see margin compression. The market must brace for sustained volatility amid a Fed still focused on reining in inflation.