Higher Interest Rates May Be Here to Stay

The Federal Reserve may keep interest rates higher for longer than expected, according to recent market analysis. Despite a weaker-than-expected jobs report, inflation data is expected to show another modest increase in July, keeping a September rate hike 'firmly in play.'

Market pricing indicates the Fed could raise rates as soon as September, but the odds are higher for an October move, according to the CME Group's FedWatch gauge. The central bank has kept rates on hold all year as officials deliberated next steps with inflation remaining well above the 2% target.

'Consumers, households and individuals haven't gotten the break from inflation they've been seeking,' said Mark Hamrick, an economic analyst and founder of The Hamrick Brief. 'Some have been leaning on borrowing to plug the gap between high prices and their own financial resources if they lack sufficient savings.'