Fed pause probability slips to 67% through September

The market-implied probability that the Federal Reserve will maintain a pause in its rate decisions through September has fallen slightly to 67% from a week earlier. Austin, a commentator, said higher interest rates encourage the government to reinvest more in short-term debt, potentially directing additional money into the private sector. As of late August 2026, short-term Treasury bill yields were in the mid-3% range, while longer-term yields reached the mid-5% range. Investors will watch Federal Reserve officials, Kevin Warsh’s upcoming speech at Jackson Hole, unemployment data and CPI data for signals about the central bank’s future policy direction.

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