Fed Rate Hike Odds Surge to 85.4 Percent Following Hot CPI Data

The Federal Reserve is all but certain to raise interest rates at its upcoming meeting on September 16, with betting odds reaching 85.4 percent, according to CME Fedwatch.

This increase in rate hike odds comes after the release of hot CPI data, which has strengthened the case for a rate hike.

While some analysts may argue that the jobs report due out on September 4 could impact the decision, the data suggests that inflation remains a key concern for the Fed.

The election on November 3 also poses a challenge to the Fed's decision-making process, with some arguing that hiking rates too close to the election could be seen as politically motivated.

However, with the Cleveland Fed Nowcast indicating high inflation and the CPI data supporting this view, it is likely that the Fed will prioritize controlling inflation over avoiding political controversy.