Updated

Traders continue to price in a strong probability that the Federal Reserve will raise interest rates at its upcoming meeting, with market-implied odds also showing a strong chance of a further hike in December. The prospect of tightening, unusual amid recent rate-cut expectations, has weighed on risk assets and pushed Treasury yields higher. Newly released August CPI data has reinforced this outlook, with markets now pricing in roughly a 90% probability of a rate hike at the September meeting, up from prior levels. The inflation print has sharpened investor focus on the Fed's policy path, adding to volatility across equities, bonds and crypto markets ahead of the decision.