Wall Street bets the probability of a Fed rate hike in September rises to nearly 60%, as the White House intensifies pressure on Warsh to cut rates.

BlockBeats News, September 7 - As U.S. August employment data showed strong performance, Wall Street's expectations for a Fed rate hike in September have intensified. CME FedWatch data shows that the market currently estimates a 58.4% probability that the Fed will raise interest rates by 25 basis points to 3.75%-4% at the September FOMC meeting.

Data shows that the U.S. added 162,000 non-farm payroll jobs in August, with the unemployment rate holding at 4.1%. Meanwhile, U.S. inflation remains above the Fed's 2% target, and the market is concerned that supply shocks such as Middle East tensions, rising oil prices, and tariffs could continue to push inflation higher. Institutions including Macquarie, Bank of America, and UBS have all raised their expectations for further rate hikes.

On the other hand, the Trump administration continues to pressure the Fed to cut rates. Trump recently stated that the Fed should lower interest rates, saying high rates are putting the U.S. at a disadvantage. Vice President Vance also noted that lowering rates would help improve housing affordability in the U.S. As the market shifts toward betting on rate hikes, the Fed led by Warsh is facing dual pressure from both the White House and market expectations.