Markets are pricing in a 50 basis point rate cut to 8% following the August CPI data.
The odds of a 50 basis point rate cut this month have dropped from 34% to 8%, according to Kalshi.
While year-on-year inflation eased to 2.5%, month-on-month inflation rose 0.3%, higher than expected.
Core CPI inflation, meanwhile, came in at 3.2%, still well above the Fed's 2.0% target.
The fight against inflation is not over yet
