Goldman Sachs predicts 25 basis point Fed rate hike in September
Goldman Sachs has reversed its forecast to expect the Federal Reserve will raise interest rates by 25 basis points in September, driven by rising oil prices and strong inflation data.
Goldman Sachs expects the U.S. Federal Reserve to raise interest rates by 25 basis points at its September meeting. The brokerage reversed its earlier stance that rates would remain unchanged this month. This change follows stronger-than-expected U.S. producer price data and a resurgence in inflation fears. Rising oil prices have surpassed $100 per barrel, adding pressure on the economic outlook. Goldman Sachs stated market pricing now indicates a high probability of tightening rather than a pause. The investment bank also cited recent oil price increases as a key factor supporting additional rate hikes. This shift aligns Goldman Sachs with J.P. Morgan, which also anticipates a September increase.
