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Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank all forecast a quarter-point increase at the Fed's Sept. 15-16 meeting after hotter-than-expected inflation data
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Goldman Sachs $GS, JPMorgan $JPM, HSBC, and Deutsche Bank are now forecasting a Federal Reserve interest rate increase this week, a reversal driven by stronger-than-expected inflation readings and rising oil prices, according to Reuters.
The four institutions are aligned on a quarter-point increase at the Sept. 15-16 meeting, and several of them see rates staying higher for longer as the Fed pursues its 2% inflation target, according to Reuters. Market odds of a hike this week stood at roughly 88% to 89%, compared with 67% to 70% before last week's inflation data.
