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Macro

US Core CPI Rises 0.3% in August, Lifting Odds of Fed Rate Hike

US core consumer prices, which exclude food and energy, rose 0.3% month over month in August and 2.4% year over year, the Bureau of Labor Statistics said Friday. Headline CPI climbed 0.4% on the month and 3.4% on the year as energy costs rose. Traders now price roughly a 90% chance of a Federal Reserve rate hike next week.

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AI take

The persistence in core prices, rather than the energy-driven headline jump, is what keeps the Fed's tightening path alive, and traders have moved close to fully pricing a hike. That matters most for rate-sensitive corners of crypto and tokenized real-world assets, where yields on competing instruments shape demand. The open question is whether core prints cool in coming months, or whether energy pass-through starts to broaden.

Generated by AI for reference only.

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