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Posted September 15, 2026 at 1:06 pm
The Fed is anticipated to hike its key interest rate tomorrow for the first time in over three years, as the Middle East conflict has lifted inflation far above the central bank’s 2% target. Investors were on the fence about an increase earlier this month, but a blockbuster nonfarm payrolls print and a stronger-than-projected Producer Price Index topped off with a hotter-than-expected Core Consumer Price Index meaningfully strengthened the case for a lift. Indeed, buoyant hiring and elevated cost forces are forcing the monetary policy institution’s hand here, a few short weeks after reporters were asking in the post-decision July presser what the committee was waiting for to heighten its benchmark yield. Probabilities did take a dramatic turn since late August, when odds of a raise stood at just 30% prior to the trio of fiery publications that have the chance at 87% this morning within the Interactive Brokers Prediction Markets.

Retail sales are expected to recover from their steepest decline in over one year in July. Indeed, the -0.6% month-over-month contraction reported in the previous print is projected to reverse to a 0.8% gain in August’s update, according to the monthly Reuters poll of 53 forecasters. But the distribution of anticipated outcomes is particularly wide for tomorrow’s release, with the minimum and maximum projections at 0.2% and 1.1%. The broad range can be explained by the fact that this indicator has an elevated deviation rate, as its historical tendencies signal that it has an outsized potential to vary from the consensus more often and in a sharper manner than the average gauge. The Interactive Brokers Prediction Markets, meanwhile, price the “Yeses” with thresholds of -0.5%, 0% and 0.5% at $0.91, $0.83 and $0.57.

Source for images: Interactive Brokers Prediction Markets.
Note: Prices are highest bids as of the morning of September 15, 2026.
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