Resilient U.S. labor market data and persistent inflation above the Fed’s 2% target have shifted trader sentiment toward a higher probability of a rate hike at the September 15-16 FOMC meeting. August nonfarm payrolls rose 162,000 with unemployment steady at 4.1%, while July CPI printed 3.4% year-over-year and core at 2.5%. Chair Kevin Warsh’s hawkish Jackson Hole remarks and the removal of forward guidance have reinforced expectations that policymakers may act if price pressures from energy and supply factors fail to ease. Markets currently imply roughly 58-70% odds of a 25-basis-point hike next week, with the August CPI release due September 11 providing the final data point before the decision.