September 11 CPI Reading Puts Rate Hike Decision in Focus

The upcoming Consumer Price Index (CPI) reading for August is set to be released on September 11, which could significantly impact the Federal Open Market Committee's (FOMC) decision at its September meeting.

The FOMC has been on pause all year despite inflation remaining above the Fed's 2% target. A hot inflation report could lead to a rate hike, while lower than expected numbers might see rates left unchanged.

Fed Chair Kevin Warsh has come across as hawkish in his views on inflation, but also expressed concerns about how the Fed measures it. If inflation data comes in hotter-than-expected, Warsh would likely have enough support from other FOMC members to move forward with a rate hike.