Banks Unanimous: 25 Basis Point Hike Expected at Wednesday's Federal Reserve Meeting

Major banks and financial institutions are now overwhelmingly predicting a 25 basis point interest rate hike from the Federal Reserve on Wednesday, following hotter-than-expected inflation data. According to CME FedWatch, the probability of a quarter-point hike has risen to 87.3%, up from 61.9% at the end of August.

The shift in expectations is significant, with many banks abandoning earlier predictions for no September rate move. UBS, HSBC, Barclays, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America, and JPMorgan Chase all now expect an increase.

Bitcoin remains below $80,000 after briefly topping $79,000, leaving traders exposed to another potential volatility spike around the Fed decision. The cryptocurrency's repeated failure to break through this resistance level has analysts on high alert for a possible repricing if the rate hike is implemented.