Market sees next Fed hike in October, following Barr comments and hot inflation reading
S&P Global said its overall inflation measure hit its highest level since October 2022.
TL;DR
- Fed Governor Michael Barr supports further interest rate hikes to combat inflation.
- Economic data from S&P Global shows strong growth in manufacturing and services sectors.
- The overall inflation measure hit its highest level since October 2022.
- Rising fuel, transportation, and wage costs are contributing to inflation.
- Market expectations for an October Fed rate hike have increased to 73%.
- Treasury yields have risen in response to the economic news and Fed comments.