Fed Rate Hike Odds Plummet as Inflation Rises Less Than Expected

A recent inflation reading has decreased the likelihood of another interest rate hike by the Federal Reserve before the midterm elections.

The core prices, which exclude food and energy prices, rose only 0.2% in August, according to the Bureau of Economic Analysis' personal consumption expenditures index.

This is a lower-than-expected increase, giving investors better-than-even odds that the Fed will keep rates steady when they meet at the end of October.

The overall price rise has been 3.4% over the past year, still above the Federal Reserve's 2% target.