Fed Rate Hike Off Table for September on Polymarket

Crypto traders are getting a break from rate hike worries as prediction markets price in a pause for September. Polymarket odds show the US Federal Reserve is no longer expected to raise interest rates at its upcoming meeting. This shift comes right after the US reported its third largest monthly job loss since 2020, making forecasters believe the central bank will hold steady for the sixth straight time.

Not everyone agrees on the next move yet. Federal Reserve Chair Kevin Warsh warned recently that the central bank remains ready to hike rates in September if inflation runs higher than expected. While June inflation fell to 3.5 percent, rising oil prices from Middle Eastern tensions and recent trade tariffs threaten to push consumer prices back up.

All eyes now turn to the upcoming Consumer Price Index report on August 12 to see the July inflation numbers. Traders should watch this data closely, because it will likely decide the final direction for monetary policy and spark strong reactions across crypto markets.