US inflation exceeds forecast, fueling September Fed hike bets

US inflation sticky above trend, Fed rate hike likely next week

US headline and core inflation beat the 0.17% monthly pace needed to reach the Fed's 2% target, supporting Chair Warsh's hawkish Jackson Hole message. A rate hike is expected at next week's FOMC meeting. USD pairs likely to strengthen as September rate-hike odds rise; EUR/USD and GBP/USD most sensitive to hawkish repricing.

https://think.ing.com/articles/sticky-us-inflation-justifies-a-fed-rate-hike/

Fed rate hike odds surge to 90% on core price jump

Market pricing for a Fed rate hike has jumped to 90% following a monthly spike in core inflation data, reinforcing hawkish expectations. This repricing supports the September hike narrative already in focus after July FOMC minutes showed three dissents. USD strength likely as higher US rates attract capital inflows; EUR/USD and GBP/USD most sensitive to Fed tightening bets.

https://finance.yahoo.com/economy/policy/article/fed-rate-hike-odds-surge-to-90-on-monthly-jump-in-core-prices-131206510.html

US Inflation Data Strengthens Case for September Fed Rate Hike

Fresh US inflation figures have increased market odds for a September Fed rate increase, reinforcing hawkish repricing after July FOMC minutes showed three dissents for a 25bp hike. USD/JPY and EUR/USD are the primary pairs affected as traders reassess terminal rate expectations and near-term policy tightening ahead of Friday's PMI and jobless-claims data.

https://x.com/LiveSquawk/status/2098475084348366867

US inflation flat in August; Fed rate hike odds rise

August CPI data showed annual inflation unchanged and elevated above the Fed's 2% target, reinforcing expectations for a September rate hike. USD strength likely continues as markets reprice hawkish Fed policy; watch September FOMC guidance and upcoming PMI/jobs data for confirmation of the hiking cycle's trajectory.

https://thehill.com/business/6085407-cpi-inflation-federal-reserve-interest-rates/