September Rate Hike Odds Surge to 85% After Latest Inflation Data

The Federal Reserve's September meeting is now seen as a near certainty for an interest rate hike, with odds rising to 85% from 72% just yesterday and less than 50% a month ago.

New inflation data released Friday showed that price pressures remain above the Fed's target, with the Consumer Price Index rising 3.4% on an annual basis and 0.4% on a monthly basis in August.

Despite some encouraging signs, including softer goods inflation due to the fading impact of tariffs, many are predicting a quarter-point hike at the upcoming meeting.

Fed officials have been divided on policy this summer, with some favoring holding rates steady and others pushing for hikes to bring inflation down to target.