Stubborn inflation raises prospect of Fed rate hike

The Federal Reserve is increasingly likely to raise interest rates next week due to stubbornly elevated inflation. Recent data from Friday indicates that annual inflation remained unchanged in August, staying significantly above the central bank's 2 percent target. This trend persists amid the ongoing war with Iran, fueling expectations of a rate hike despite pressure from President Trump. Market analysts are now suggesting specific trades to prepare for this anticipated monetary policy shift by the Fed.