US inflation raised September Fed rate hike odds to 79%

Markets now assign a 79% probability to a US Federal Reserve interest-rate hike in September after August CPI inflation reached 3.4%.

This marks a shift from expectations at the start of 2026, when investors anticipated the Fed’s third rate cut of the year in September. Persistent inflation has revived expectations that interest rates will remain higher for longer, which could pressure crypto and other risk assets.