Fed seen a bit more likely to hike after inflation data

US inflation data for July showed a slight increase, with the personal consumption expenditures price index rising to 3.7 percent. This uptick in inflation rates has strengthened the case for a Federal Reserve interest rate hike. The Fed is now seen as more likely to raise interest rates in response to the persistent underlying inflation pressures, which could have significant implications for the economy and markets.

Why it matters

The US inflation data showed a slight increase, which may lead to a rate hike by the Fed. This could strengthen the US dollar and affect the overall market sentiment.

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