Will the Fed deliver a third 0.75 percentage point increase?
The US Federal Reserve is widely expected to announce a third consecutive 0.75 percentage point interest rate increase at the conclusion of its September policy meeting, which wraps up on Wednesday.
The Fed has in recent months raised interest rates at a brisk pace in an effort to rein in price growth that continues to run near 40-year highs. Economists had expected consumer prices to fall in August from July due to the drop in petrol prices, but data released last Tuesday showed a small increase, suggesting the Fed has more work to do.
Following the inflation data, investors began betting on the possibility of a full percentage point increase, though the odds of that remain low, given the consistent messaging from the Fed in recent weeks about a 0.75 percentage point move.