Fed Rate Hike Odds Jump to 68% After Warsh Flags Inflation Risk

Fed funds futures traders priced 68% odds of a September 2026 rate hike as of September 1, up from 35% in mid-August, after Fed Chairman Kevin Warsh acknowledged inflation risk. A hike would raise borrowing costs on credit cards, mortgages, and auto loans. The August inflation print remains the key catalyst before the September 16 FOMC decision.