(Reuters) – The Federal Reserve is seen delivering a third straight 75-basis point interest rate hike next week after a government report showed that consumer prices did not ease as expected in August, meaning more work ahead for the central bank as it fights decades-high inflation.
Futures contracts tied to the Fed’s policy rate fell after the Labor Department said the consumer price index climbed 0.1% last month from July, and gained 8.3% from a year earlier. Economists had expected a small monthly decline. The price rise in interest-rate futures contracts reflects near-certainty that the Fed will at least deliver a 75-basis point rate hike next week, with a small chance of an even bigger increase.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)
