The September CPI report was a little softer than expected. Goods prices increased due to tariffs, but housing services inflation has been coming down as expected. Services other than housing have been moving sideways, with the non-market part not giving a strong signal about economic tightness.

Excluding tariffs, inflation is close to our 2% goal. Tariff inflation is viewed as a one-time increase, though it's a risk we continue to monitor carefully.

The part of services inflation that isn't coming down as we'd like is mostly the non-market non-housing services, which is linked to financial services imputed pricing. Policy remains modestly restrictive, aiming to gradually cool the economy and labor market, consistent with our commitment to return inflation to 2%.