CME FedWatch showed a 66% probability at about 11:40 a.m. Eastern time on Monday, August 31 that the Federal Open Market Committee would raise the federal funds rate by 25 basis points at its upcoming September meeting, taking the target range to 375-400 basis points. The tool, which derives policy expectations from 30-day federal funds futures, reflects market pricing rather than an official Federal Reserve forecast. Higher rates generally increase borrowing costs and fixed-income yields, potentially making non-yielding risk assets such as cryptocurrencies less attractive relative to income-producing instruments. The FOMC began raising rates in 2022 after inflation reached multi-year highs. At the recent Jackson Hole symposium, Fed Chairman Kevin Warsh described inflation as concerning, citing a 3.7% 12-month PCE increase and a 4.1% six-month increase, while stressing that inflation remains above the Fed’s 2% target. Barclays recently predicted two rate increases this year, in September and December, which would put the target range 50 basis points above its current level, Reuters reported.