Barr signals more rate hikes ahead

Fed Governor Michael Barr said Wednesday that policymakers still have more work to do after last week's quarter-percentage-point increase to bring inflation down to target.

“Further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.”

Inflation hits four-year high

S&P Global reported that its overall inflation measure hit its highest level since October two thousand twenty-two, driven by higher fuel and transportation costs and rising wages.

Business activity surges to multi-year peaks

S&P Global's services index hit fifty eight point seven, its highest in fifty nine months, while manufacturing jumped to fifty six point seven, the peak going back fifty three months.

Job growth accelerates sharply

Companies reported needing more workers to handle order backlogs. Service sector employment hit its fastest expansion rate since June two thousand two, while manufacturing was at its highest pace since February two thousand twenty-one.

October hike odds jump to 73 percent

Markets reacted aggressively to the news. The odds of a rate hike when the Federal Open Market Committee meets October twenty-seven to twenty-eight jumped to seventy three percent, according to the CME's FedWatch.

Treasury yields soar on rate expectations

The two-year Treasury note, considered most sensitive to Fed policy expectations, climbed more than thirteen basis points to four point nine percent as markets priced in higher rates ahead.