September Rate Hike Odds Fall to 34% After US CPI Drops to 3.4%
Market-implied probability of a September Federal Reserve rate increase tumbled to 34% as U.S. consumer price inflation slowed to 3.4% year-over-year, the lowest since mid-July.
The chance of a Federal Reserve rate hike in September dropped sharply after new inflation data. Odds fell to 34% from roughly double that level at the end of July.
The decline followed the release of U.S. CPI figures, which showed annual inflation falling to 3.4%. This marks the lowest implied probability of a September move since July 17.
Source: The Kobeissi Letter