Fed Awaits More Data as US Inflation Rate Holds Steady

The US inflation rate for July came in as expected at 3.4% year-over-year, according to the latest Consumer Price Index (CPI) report.

This news may provide some comfort for the Federal Reserve (Fed), but it's not a decisive factor in determining whether interest rates will be hiked in September.

The Fed is still waiting for more data to prove that there should be a rate hike, and the ongoing US-Iran conflict is adding pressure on oil prices and the bond market.

Market pricing currently suggests a 35% chance of a rate hike in September, down from a coin flip before the data was released.

The focus will now shift to the Jackson Hole symposium, where Fed Chair Jerome Powell's speech is expected to provide some clues on the Fed's future actions.