Fed Rate Hike Bets Skyrocket Amid August Inflation Surge

The global markets experienced a brief respite on Friday as oil prices retreated from a recent four-month high. However, concerns about a looming U.S. Federal Reserve rate hike persisted due to surging consumer inflation.

A report by the U.S. Labor Department revealed a 0.4% rise in the Consumer Price Index (CPI) in August, fueling market speculation about a potential interest rate increase.

The probability of a Fed rate hike now stands at 85%, up from 67% previously. This has maintained pressure on bond yields across the board.