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Markets· August 16, 2026 at 02:38 p.m.

Fed Rate Hike Odds Plummet Amid Soft Inflation Reports, but Key Indicators Remain Elevated

Fed Rate Hike Odds Plummet Amid Soft Inflation Reports, but Key Indicators Remain Elevated

Key takeaways

  • Fed rate hike odds have dropped to 25%
  • Energy costs remain elevated
  • Core inflation is above 2%

Wider implications: Resilient economic growth and elevated core inflation rates suggest that investors should not treat the current 25% September hike probability as a certainty. Smart investors should position their portfolios accordingly, anticipating potential changes in the odds before the next inflation surprise.

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