Goldman Sachs, JP Morgan expect September Fed hike as inflation lingers
Major financial institutions including Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank forecast a quarter-point increase at the Federal Reserve. This shift follows stronger-than-expected inflation readings and rising oil prices that pushed US wholesale prices higher, raising doubts about persistent price pressures. The market views a potential rate increase as imminent, setting the stage for the first interest rate hike by the Fed in years. Wall Street expectations have coalesced around this move for the upcoming policy decision.
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- ✓ Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank all forecast a quarter-point increase at the Fed.
- ✓ US wholesale prices rose in the latest sign of stubborn inflation as oil prices continue to climb.
What changed
Goldman Sachs flipped its forecast to project a September interest rate hike following stronger inflation data.
Live updates
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Goldman Sachs, JPMorgan Expect Fed Rate Hike This Week
Major financial institutions including Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank forecast a quarter-point increase at the Federal Reserve. This shift follows stronger-than-expected inflation readings and rising oil prices that pushed US wholesale prices higher, raising doubts about persistent price pressures. The market views a potential rate increase as imminent, setting the stage for the first interest rate hike by the Fed in years. Wall Street expectations have coalesced around this move for the upcoming policy decision.
Why it matters
The anticipated policy shift comes after a prolonged period where the central bank kept rates steady since 2023. Stubborn inflation indicators, specifically climbing wholesale prices and oil costs, forced major banks to flip their forecasts. This action places Fed official Warsh on a potential collision course with Trump as the rate hike looms.
What is confirmed
- Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank all forecast a quarter-point increase at the Fed.
- US wholesale prices rose in the latest sign of stubborn inflation as oil prices continue to climb.
Still unconfirmed
- The crypto market is bracing for huge volatility in Bitcoin, Ethereum, and XRP due to the macro-heavy week.
- Fed's Warsh is on a collision course with Trump as a rate hike looms.
What to watch next
- The official interest rate decision by the Federal Reserve this week.
- Potential policy announcements addressing stubborn inflation and climbing oil prices.
confidence 95%Sources used for this update (11)
- AP News — US wholesale prices rise in latest sign of stubborn inflation as oil prices continue to climb
- WSJ — The Fed Is Poised to Raise Interest Rates for the First Time in Years
- Forbes — Why The Fed Is Likely To Raise Rates This Week
- Bloomberg.com — Fed’s Warsh on Collision Course With Trump as Rate Hike Looms
- reuters.com — Goldman Sachs flips forecast, now sees September Fed rate hike
- USA Today — Is it finally time? Why the Fed may raise rates for first time since 2023.
- Yahoo Finance — The market says a Fed rate hike is a done deal. Here's why it might hold steady.
- finance.yahoo.com — Goldman Sachs, JPMorgan expect Fed rate hike this week
- www.aol.com — Global banks coalesce around Fed hike call after inflation surprises
- finance.yahoo.com — Crypto Market Braces for Volatility as Goldman Sachs & JPMorgan Expect Fed Rate Hike This Week
- www.zawya.com — AmiViz to show architecture-first security at GISEC Global
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