Financial markets are pricing a higher chance of another Federal Reserve interest-rate increase at the October meeting after officials warned that inflation risks remain unresolved. Cleveland Fed President Hammack said elevated inflation had persisted for five years and could entrench higher price expectations, Kansas City Fed President Schmid said the inflation problem was not solved and highlighted extreme U.S. debt levels, and New York Fed President Williams warned repeated supply shocks could keep medium- and long-term price pressures elevated. CME FedWatch showed a 64.2% probability of a 25-basis-point October hike, while LSEG data had indicated a greater than 60% chance and earlier pricing had put the probability near 70%. The Federal Reserve raised rates by 25 basis points on September 16, its first increase in three years; another move would lift the target range to 4% to 4.25%. The September U.S. payrolls report, due October 2, is expected to show 100,000 jobs added and unemployment of 4.2%, while core PCE inflation had risen 3.3% in the 12 months through July, above the Fed’s 2% target. A strong jobs report could reinforce rate-hike expectations and pressure stocks, while softer inflation could support sentiment. Major equity indexes remained near records, supported by technology and artificial-intelligence-linked shares, but rising Treasury yields and weakness among average stocks exposed risks beneath the rally. Investors are also watching eurozone inflation, China’s purchasing managers’ index, an Australian central-bank decision, Micron Technology’s results, the global bond selloff and energy volatility linked to the Middle East conflict. Political scrutiny of the Fed has intensified ahead of midterm elections after President Trump criticized policymakers for resisting demands for substantially lower borrowing costs.