US Brokerages Predict Fed Rate Hike Amid Inflation Concerns

Major brokerages including Goldman Sachs, J.P. Morgan, HSBC, and Deutsche Bank now expect a 25-basis-point rate increase at the Fed's September meeting, citing stronger-than-expected inflation data and renewed hostilities in the Middle East. The shift in expectations is a sharp reversal from earlier this year, when many economists expected the Fed to remain on hold. The Fed's meeting on Wednesday will focus on the outlook for further monetary tightening.