Fed seen likely to raise rates next week after inflation report
TLT•Traders raise odds of a Fed rate hike
Traders on Friday added to bets the Federal Reserve will raise short-term interest rates at its meeting next week after the latest inflation reading.
Core inflation runs hotter than expected
U.S. consumer price inflation excluding energy and food, a key measure of underlying price pressure, rose 0.3% last month from the previous month, the Bureau of Labor Statistics reported, more than the 0.2% that economists had anticipated. Traders are now pricing about an 85% chance of a quarter-point increase at the Fed's September 15-16 meeting, versus about 70% before the report.
