On Friday, bets increased that the Fed will hike by a quarter percentage point after data showed consumer inflation picked up in August.
Fed Chair Kevin Warsh, center, talks to Bank of England Governor Andrew Bailey, right, and Bank of Canada Governor Tiff Macklem at the annual Jackson Hole Economic Policy Symposium on Aug 28, 2026, in Moran, Wyoming. (AP Photo/Amber Baesler)
12 Sep 2026 05:06AM
(Updated: 12 Sep 2026 05:12AM)
NEW YORK: Investors head into next week's Federal Reserve meeting bracing for the central bank to raise interest rates, a move that could threaten a US stock market rally already showing some vulnerability to rising bond yields.For years, inflation has persistently run above the Fed's 2 percent annual target, and interest rate increases are the primary tool the central bank has historically deployed to try to tamp down prices.After last month's speech by new Fed Chair Kevin Warsh that was widely perceived as hawkish, bets have grown that the Fed will hike rates on Wednesday (Sep 16), at the end of its two-day meeting. Some investors remain dubious that the central bank, which has held rates steady in 2026, will take that step.On Friday, bets increased that the Fed will hike by a quarter percentage point after data showed consumer inflation picked up in August. The core measure of the Consumer Price Index, which excludes the volatile food and energy components, rose by a hotter-than-expected 0.3 percent.
