Fed Rate Hike Odds Surge to 86% Ahead of September 16 Meeting

Odds of a Federal Reserve rate hike at the September 16 FOMC meeting increased from 48% to 86% within a month. August's Consumer Price Index (CPI) was reported at 3.4%, and there were indications of rising inflation pressures due to elevated oil prices. These factors shift expectations around the Fed's monetary policy, with a significant market response noted as Treasury yields approached 5%. This change is crucial for investors, signaling potential impacts on equity valuations based on upcoming Fed guidance.