Fed rate hike odds hit 46% as Kashkari warns on inflation

Minneapolis Fed President Neel Kashkari supports gradual interest rate increases to combat persistent inflation and uncertainty in the Strait of Hormuz. Polymarket traders predict a 46% chance of a rate increase in September. Kashkari believes incremental rate hikes are necessary to control inflation without harming the US economy. Fed’s July decision to maintain rates exposed a policy split. Energy costs from Hormuz disruption add to inflation risks. Crypto traders anticipate a September rate hold. Bitcoin trades near $64,700, impacted by Fed’s rate decisions.