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Fed rate-hike bets rise to 85% after hot August inflation data
- On Friday, the CME FedWatch Tool showed an 87% probability that the Federal Reserve will lift its fed funds rate by 25 basis points on Wednesday, a dramatic shift in market sentiment.
- Friday's inflation report from the Bureau of Labor Statistics showed August consumer prices rose 3.4% year-over-year, while core inflation climbed 0.3% monthly, exceeding expectations and signaling persistent price pressures.
- Treasury yields climbed as traders priced in tighter policy; the 10-year yield approached 5% while the 30-year Treasury was quoted at 5.32%, reflecting market reaction to the firm inflation data.
- Despite inflation concerns, equities rallied on Friday as the S&P 500 added 1.1% and the Nasdaq Composite surged 1.3%, with 27 of the Dow Jones Industrial Average's 30 components trading higher.
- Investors now focus on the September 16 Federal Open Market Committee meeting, where officials will signal whether this rate hike represents a singular adjustment or the start of further monetary tightening.
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19 Articles
19 Articles
Fed Rate Hikes Won’t Be Enough to Get Inflation to 2%
The latest inflation report points to a hard truth: The US is not going back to a 2% inflation rate anytime soon. At least not easily. It’s clear, as inflation picks up and real wages continue to fall, that the period of smooth disinflation is over. The reasons could be government policy — on trade, immigration or energy — but for the […]
(New York = Yonhap News) Correspondent Kim Yeon-sook = As inflationary pressures in the U.S. show no signs of abating, expectations that the U.S. Federal Reserve (Fed) will raise the benchmark interest rate...
·Seoul, Korea (the Republic of)
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Evening Standard+3 Reposted by 3 other sources
Stocks climb but US data boosts predictions of Fed interest rate hike
In London, the FTSE 100 index ended up 41.52 points, 0.4%, at 10,650.44.
·London, United Kingdom
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Coverage Details
Total News Sources19
Leaning Left3Leaning Right4Center4Last UpdatedBias Distribution37% Center, 36% Right
Bias Distribution
- 37% of the sources are Center, 36% of the sources lean Right
37% Center
L 27%
C 37%
R 36%
Factuality
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