Core CPI rises faster than forecast in August, fueling Fed rate-hike bets

U.S. core consumer inflation accelerated to 0.3% month-over-month in August, topping forecasts, while annual inflation held at 2.4%, the slowest pace since early 2021. The hotter-than-expected report reignites speculation that the Federal Reserve $FED may raise rates as soon as next week, contradicting recent dovish signals.

Treasury yields surged sharply, with the 10-year $US10Y yield briefly breaking 5% — the highest since 2024. Market participants have revised Fed rate-hike odds materially higher, reshaping the near-term macro outlook for equities and fixed income.

#inflation #markets #rates