Business · Malaysia Bureau
Goldman Sachs, JP Morgan forecast September Fed rate hike amid persistent inflation
Major Wall Street banks have joined forecasters in taking a more hawkish stance on US monetary policy following stronger-than-expected inflation data and climbing oil prices. The shift signals growing expectations that the Federal Reserve will raise interest rates next month.
LSN Malaysia ·
Goldman Sachs and JP Morgan Chase are among leading financial institutions now anticipating a rate increase from the US Federal Reserve in September, reflecting heightened concerns about inflation persistence in the world's largest economy.
The shift in outlook comes after recent economic data showed inflation remaining hotter than anticipated, while crude oil prices have climbed higher in recent weeks. These developments have prompted Wall Street analysts to adopt a more hawkish view on the central bank's monetary policy trajectory.
The forecasts from major investment banks carry significant weight in financial markets, as they shape investor expectations ahead of Federal Reserve policy announcements. A rate hike in September would represent the Fed's continued effort to combat inflationary pressures that have persisted despite previous rounds of interest rate increases.
The evolving outlook underscores the delicate balance policymakers face between controlling inflation and supporting economic growth. Market participants will be closely monitoring upcoming employment data and consumer price reports for additional signals about the Fed's likely course of action in the coming weeks.