US Inflation Rises to 3.4%, Fueling Rate Hike Speculation

US inflation remained high in August, rising by 0.4% from July and 3.4% from last year due to higher energy prices.

The report suggests that inflation is not moving towards the Federal Reserve's goal amid ongoing pressures from the Iran war, tariffs, and the data center buildout.

Joe Saluzzi, co-founder of Themis Trading, said that the numbers are 'still stubborn' and may not satisfy anyone, whether they're bullish or bearish.

The Fed will likely see these numbers as tipping the scale in favor of a rate hike next week, despite some officials suggesting it could come down to what the figures showed.

Fed Chairman Kevin Warsh has been reluctant to tip his hand on the central bank's next move, but said that if it can't be confident that underlying inflation is moving towards its objective 'clearly and at sufficient speed', it will have work to do.