Fed Rate Hike Chances Rise to 70% Amid Inflation Pressures

A growing number of factors are pushing up inflation, increasing the likelihood that the Federal Reserve will raise interest rates next week. According to market pricing, chances for a rate hike have risen to 70% in morning action on Thursday.

The latest data shows wholesale prices rose 0.4% in August, while U.S. crude oil prices surged past $100 a barrel. This comes as the conflict with Iran continues to drag on, putting further pressure on inflation.

Jeffrey Roach, chief economist at LPL Financial, notes that 'inflation pressures are becoming increasingly entrenched, leaving investors in search of a catalyst strong enough to change the inflation narrative.'

Experts point out that even a soft reading on consumer prices might indicate that companies are struggling to pass through higher costs to consumers.