August’s CPI (Consumer Price Index) climbed higher than the estimates, rising 0.1% sequentially and 8.3% year-over-year. In its efforts to battle rampant inflation, the Fed announced a third consecutive 75 basis point rate hike last month.
The persistently high inflation has led to the Fed raising its key rate estimates for 2022. The central bank officials now predict the key rate to end this year at 4.5% to 4.75%, up from the previously predicted 3.25% to 3.5% in June.
