Rate Hike Frenzy: The Fed's Inflation Conundrum The August Consumer Price Index (CPI) numbers have sparked a frenzy of speculation about a rate hike at next week's Federal Reserve policy meeting, with markets betting on a 90% chance.
This latest inflation reading has reignited the debate among Fed officials about whether to tighten monetary policy and bring prices back down to their 2% goal. The core CPI rose 0.
3% month over month, exceeding expectations of 0. 2%, while the year over year rate held steady at 2. 4%.