The Federal Reserve Just Released Its August Inflation Forecast, and It Could Put the FOMC on a Collision Course for Its September Meeting

The Federal Reserve's August inflation forecast shows potential reacceleration in core inflation, with monthly core CPI projected at 0.2% for July and 0.27% for August. This data could deepen divisions within the FOMC ahead of its September 15-16 meeting, where a rate hike is now considered a toss-up with roughly 55% probability. The inflation estimates could fuel both hawkish and dovish arguments, potentially leading to a split committee decision.