US Inflation Data Triggers Rate Hike Delay Expectations
The US Consumer Price Index (CPI) showed a monthly decrease of 0.4%, leading to a reassessment of the Federal Reserve's monetary policy outlook.
This softer inflation data has reduced market expectations for a rate hike by the September 2026 meeting, with market participants interpreting it as a potential delay in Fed rate hikes.
Market pricing for a September 2026 Fed rate hike has dropped to 28% YES, down from 31% just 24 hours ago. The October 2026 meeting's rate hike probability has also decreased, now at 39.5% YES.