Core CPI rose a faster-than-forecast 0.3% in August, setting up possible Fed rate hike
60-second summary
Core CPI climbs 0.3% in August, outpacing forecasts and reviving expectations of a Federal Reserve rate hike, after Chair Kevin Warsh warned two weeks earlier that the central bank must act if inflation fails to ease. The surprise uptick pressures markets to price higher borrowing costs, prompting traders to anticipate tighter monetary policy and potentially dampening risk‑on assets.
The August CPI report had taken on outsized importance after Fed Chair Kevin Warsh two weeks ago suggested the central bank may have to act if inflation doesn't soon slow.