Fed Rate Hike Odds Climb to 68% as Warsh Flags Inflation

Traders now see 68% odds of a September 2026 Fed rate hike, up from 35% in mid-August, after Chairman Kevin Warsh acknowledged inflation risk. Higher rates would lift borrowing costs on credit cards, mortgages, and auto loans. The August inflation reading is the key data point before the Fed's September 16 decision.