US inflation rises, increasing Fed rate hike expectations

US inflation Federal Reserve interest rate hike Consumer Price Index Wall Street

US inflation data for August shows the Consumer Price Index (CPI) rose 0.4% month-on-month, accelerating from 0.1% in July. Annual inflation remained steady at 3.4%. A significant driver was energy, with gasoline prices increasing 3.9% during the month. Core CPI, which excludes food and energy, rose 0.3% month-on-month and 2.4% year-on-year, exceeding some expert forecasts.

The hotter-than-expected inflation data has intensified market expectations for a Federal Reserve interest rate hike at the upcoming September 15-16 meeting. According to the CME FedWatch Tool, the probability of a rate hike has risen to approximately 90%. In response to the data, Wall Street saw gains, with the Dow Jones Industrial Average rising 0.98%, the S&P 500 increasing 0.86%, and the Nasdaq Composite climbing 0.96%.

Financial analysts are also adjusting their long-term outlooks. TD Securities has revised its forecast, predicting three total interest rate hikes starting in September 2026, moving away from its previous stance of a policy pause. Meanwhile, the US Dollar Index (DXY) has shown volatility, hovering near the 99.00 zone as markets weigh inflation data against shifting Treasury yields and oil price fluctuations.

Entities

CME Group · Dow Jones Industrial Average · Federal Reserve · TD Securities · US Bureau of Labor Statistics · United States · Vietcombank · Vietnam · Wall Street

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Brent crude oil prices decreased by 2.8% to 104.61 USD per barrel. giavang.net
[○ 1 SOURCE] Vietcombank's USD exchange rates closed at a buy rate of 25,700 VND and a sell rate of 26,110 VND.
[● 2 SOURCES] The Dow Jones Industrial Average rose by 509.19 points, representing a 0.98% increase. giavang.net · doanhnghiephoinhap.vn
[● 5 SOURCES] The US Consumer Price Index (CPI) increased by 0.4% in August, compared to a 0.1% increase in July. giavang.net · thanhnien.vn · baogialai.com.vn · bitcoinethereumnews.com
[○ 1 SOURCE] Positive FDI inflows and successful foreign currency mobilization by commercial banks are supporting the domestic exchange rate.
[DISPUTED] Market participants forecast an 86% probability that the Federal Reserve will raise interest rates by 0.25 percentage points. thanhnien.vn
[○ 1 SOURCE] TD Securities revised its forecast to predict three total interest rate hikes, starting in September 2026. blogtienao.com
[● 2 SOURCES] The S&P 500 rose 0.86% to 7,656.98 and the Nasdaq Composite increased 0.96% to 26,333.04. doanhnghiephoinhap.vn · giavang.net
[DISPUTED] Market participants forecast approximately a 90% probability of a Federal Reserve interest rate hike at the September 15-16 meeting. baogialai.com.vn · doanhnghiephoinhap.vn · giavang.net · thanhnien.vn
[● 4 SOURCES] Core CPI increased by 0.3% month-on-month and 2.4% year-on-year. baogialai.com.vn · giavang.net · thanhnien.vn
[● 3 SOURCES] Gasoline prices rose 3.9% in August. baogialai.com.vn · bitcoinethereumnews.com