Fed Rate Hike Expected After Hot Inflation
Hotter than expected inflation readings and rising energy prices have increased expectations for a Federal Reserve interest rate hike at next week's meeting. Core consumer prices rose 0.3 percent last month, exceeding economist forecasts and prompting markets to price in a quarter point increase.
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United States consumer prices rose 0.3% last month, building a case for an interest-rate hike at the central bank's policy meeting next week. The hotter-than-expected print follows a stronger producer price index and oil prices surging above $100 a barrel amid renewed hostilities involving Iran. Financial markets are pricing an 85% probability of a quarter-point increase, up from 70% prior to the report.
