The case for a Federal Reserve rate hike next week strengthened after another reading showed US inflation remaining stubborn, raising concerns that price pressures could take longer to ease.
According to Reuters, traders are now pricing in about an 85% chance of a 25-basis-point rate increase at the Fed's September 15-16 meeting, up from roughly 70% before the latest inflation report. Markets are also beginning to price in the possibility of another hike in December.
