Federal Reserve Rate Hike Prospects Rise Ahead of August Inflation Report

The likelihood of a Federal Reserve interest rate hike is increasing as markets await August inflation data. Following stronger-than-expected U.S. jobs figures, money markets now price in a 59% chance of a 25 basis-point increase at the Fed's September 16 meeting. While some Fed officials support holding rates if inflation moderates, the overall sentiment points to potential tightening.