Goldman Sachs expects the US Federal Reserve to raise interest rates by 25 basis points at its September meeting, joining a growing number of Wall Street firms that anticipate further monetary policy tightening as inflation concerns resurface, Reuters reported.According to Reuters, Goldman Sachs reversed its earlier forecast that the Fed would leave interest rates unchanged this month. The brokerage said the change was driven mainly by market pricing, which now points to a high probability of a rate hike, as well as the likelihood that policymakers would be reluctant to surprise investors with a pause.Read more: Global Market Today: Asian stocks retreat after AI warnings, oil advancesGoldman Sachs also highlighted the recent rise in oil prices as a factor that could strengthen the case for additional tightening. Oil prices have moved above $100 a barrel, adding to concerns that higher energy costs could put renewed pressure on inflation.The shift in the investment bank's outlook comes after stronger-than-expected U.S. producer price data further fuelled inflation worries. The combination of firmer price pressures and rising energy costs has prompted investors and several Wall Street brokerages to increase their expectations for further Fed rate hikes.Read more: Anthropic's AI warning may weigh on chips, but trade seen intactMarkets are currently pricing in an 87% probability of a 25-basis-point rate increase at the September meeting, up from around 70% before the latest economic data, according to CME's FedWatch Tool. Investors are also expecting another rate increase in December.Goldman's revised forecast underscores the growing uncertainty around the Fed's policy path as policymakers balance persistent inflation pressures against concerns over economic growth.