Hot US inflation puts a Fed rate hike back on the table

What happened

Bloomberg reports that September inflation data in the US came in hot. That lit up expectations that the Federal Reserve may raise interest rates this month. According to Bloomberg, a hike had looked unlikely after policymakers in recent weeks signaled they had time to wait.

Why it matters

The Fed sets the price of money in the biggest economy in the world, and that price travels. As a general rule, when US rates go up, dollar assets pay more, money tends to leave countries like Mexico, and the peso can lose ground; Canadian borrowing costs tend to feel the pull too. For you, that chain tends to show up as a pricier dollar when you pay for apps or travel, and as costlier credit cards and loans.