ANOTHER RATE HIKE IS EXPECTED BEFORE THE END OF 2026 . HERE WHY IT MIGHT HAVE A MUCH BIGGER IMPACT ON THE MARKETS THIS TIME

What happened: The Federal Reserve raised rates in September, and investors and analysts expect another hike before the end of 2026, with the CME FedWatch Tool showing a 90% probability for the Dec. 9 meeting. Key numbers: September CPI inflation rose to 3.7% from 3.4% the prior month. Fuel oil rose 74% and gasoline 34% year over year. October meeting hike probability is 17%. Why it matters: A hike could signal Fed chair Kevin Warsh is targeting 2% inflation, and persistent inflation may raise concern about a repeat of 2022, when rising rates crushed the market.

The Federal Reserve raised rates in September, and investors and analysts expect another hike before the end of 2026, with the CME FedWatch Tool showing a 90% probability for the Dec. 9 meeting.

A hike could signal Fed chair Kevin Warsh is targeting 2% inflation, and persistent inflation may raise concern about a repeat of 2022, when rising rates crushed the market.