August CPI Puts Fed Policy in Focus as Hike Odds Reach 90%

Markets were betting on a 90% chance of a Federal Reserve rate hike at Wednesday’s policy meeting, according to CME FedWatch, as reported by Yahoo Finance. FOMC Polymarket odds are similar, at an 82% chance of a hike.

The shift followed an August inflation report in which core CPI, excluding food and energy, rose 0.3% month over month, above expectations for a 0.2% increase. Headline CPI rose 0.4% during the month and 3.4% over the previous 12 months.

(SOURCE: Polymarket) The available evidence does not establish a Bitcoin price reaction to the inflation report or a specific outcome for Bitcoin and altcoins from the Fed meeting.

For crypto market participants, the immediate takeaway is uncertainty: the policy decision and officials’ assessment of inflation remain the central events to monitor, rather than a confirmed crypto-market response.