Fed rate hike expectation rises to 85 percent
Market pricing for the US Federal Reserve to raise interest rates at its upcoming meeting has strengthened.
Market expectations that the US Federal Reserve will implement a 25 basis point interest rate hike at its Federal Open Market Committee meeting next week have reached 85 percent.
Market Conditions Ahead of the Meeting
As the US Federal Reserve prepares for its monetary policy meeting next week, strong labor market and above-target inflation data are reinforcing the probability of a rate hike.
Statements by Chairman Warsh
Fed Chairman Kevin Warsh emphasized in his speech at Jackson Hole that if inflation does not recede to the target, additional steps could be taken and the primary focus must be on prices.
July Meeting Decision Details
While the policy rate was kept unchanged at the July meeting, three officials dissented in favor of a 25 basis point rate hike.
August Macroeconomic Data
In August, nonfarm payrolls increased by 162 thousand, the unemployment rate stood at 4.1 percent, and the CPI recorded an annual increase of 3.4 percent.