An expected Fed rate hike on Wednesday offered some relief to stock investors that the central bank was working to contain inflation.

The 12-month rate of inflation as of August 2026 is 3.4%, according to the Bureau of Labor Statistics (BLS). Energy inflation spiked to 16.9% as the status of the Strait of Hormuz remains uncertain. Core inflation, which excludes energy and food, was 2.4%.

As the war in the Middle East continues to push up energy prices and foster heightened fears about inflation, the Bank of England held interest rates steady on Thursday. The decision to not raise rates this month makes it an outlier among other large global central banks.

The Bank of England kept interest rates on hold on Thursday but warned they might have to go up if the Iran war drags on, while predicting British inflation will top 4% early next year.

ECB Governing Council member Gabriel Makhlouf discusses the outlook for inflation, the economy and interest rates. “At a time of uncertainty, every meeting is a live meeting for the European Central Bank,

The details in the latest Consumer Price Index report could compel the Federal Reserve to raise interest rates.

The FOMC is expected to raise the federal-funds target range to 3.75%-4% when it releases its rate decision on Wednesday at 2 p.m. Eastern. Warsh will later speak to the media in a press conference slated to start at 2:30 p.

The report comes at a pivotal moment for the Federal Reserve, which is scheduled to meet next week to decide whether to hike interest rates.