Fed Rate Expectations Shift Ahead Of Inflation Data

Investors are closely watching upcoming inflation data to gauge the likely direction of future central bank interest-rate decisions. According to Jin10, Capital.com analyst Daniela Hathorn said market expectations for a Federal Reserve rate hike before the end of the year rose sharply over the past week, meaning the inflation release could either reinforce or challenge that repricing. LSEG data showed investors had fully priced in a 25-basis-point Fed rate increase by the end of 2026.