Global banks forecast Fed rate hike
Major global banks now expect the Federal Reserve to raise interest rates this week. Stronger inflation readings and rising oil prices prompted the shift in forecasts ahead of the upcoming policy meeting.
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Major global banks shifted expectations on Monday morning, forecasting a quarter-point Federal Reserve rate hike this week following stronger-than-expected inflation readings in the United States. The pivot follows August reports showing consumer and producer prices rising faster than anticipated alongside climbing energy costs. Markets now price in a 90% probability of a rate increase during the central bank's policy meeting concluding Wednesday.
