Fed Rate Outlook Clouds Inflation Data Ahead

Investors are bracing for inflation data as they assess whether the US Federal Reserve will raise interest rates at its September 15-16 policy meeting.

The S&P 500 slipped on Friday but still finished the week marginally higher, remaining roughly 1% below its record high reached in mid-August.

Shifting expectations over monetary policy and rising U.S. Treasury yields have added uncertainty to an otherwise strong run for U.S. equities.

The Consumer Price Index, scheduled for release on September 11, is expected to be the week’s most important economic report.

Fed officials have spent recent months underscoring their commitment to price stability, and at some point, that rhetoric will need to be backed by action if inflation fails to show sufficient progress, said Sid Vaidya, chief investment strategist at TD Wealth.