The US Consumer Price Index (CPI) report for August, due on September 11, will be a key factor in the Federal Reserve’s interest rate decision at its meeting on September 15-16. July CPI had increased by 0.1% month-over-month and 3.4% year-over-year, while the Fed’s benchmark rate currently stands at 3.50% to 3.75%. The probability of a rate hike at the September meeting has surged to 63.5%, up from 55% just 24 hours earlier, reflecting growing anticipation of monetary tightening. Comments from Fed Chair Jerome Powell following the data release will also be closely watched by markets.
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