Markets are pricing nearly one percentage point of Federal Reserve rate increases over the next 12 months as persistent energy-driven inflation, resilient US economic activity and hawkish policymaker comments bolster expectations for further tightening. Fed Governor Michael Barr said additional increases will likely be needed to curb inflation, while New York Fed President John Williams said another increase late this year could be appropriate. The dollar index traded around 101.4 on Wednesday and was on course to gain roughly 2% for the month, after earlier reporting put its September gain at 1.8%. Oil prices remained elevated as US-Iran negotiations stayed deadlocked, though improving Middle East energy flows eased some supply concerns. Investors awaited Wednesday's PCE price index, the Fed's preferred inflation gauge, and Friday's monthly jobs report for fresh guidance on the policy outlook.