Wall Street Institutions Overwhelmingly Expect 25 Bps Rate Hike on September 16

Wall Street institutions are overwhelmingly expecting the Federal Reserve to raise interest rates by 25 basis points on September 16. The list of banks predicting a hike includes UBS, HSBC, Barclays, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America, and JPMorgan Chase. These predictions come after Fed Chair Kevin Warsh's warning at Jackson Hole that inflation needs to move towards the target 'clearly and at sufficient speed.' The CME Fedwatch tool estimates a 87.3% chance of a quarter-point hike this week.

The Federal Open Market Committee (FOMC) will meet on September 15, with the rate decision due the next day. This comes as Bitcoin's price has been fluctuating wildly, crossing $79,000 yesterday before slipping back to around $77,000 today. Many analysts believe that the asset's price will struggle at key levels of $79,500 and $80,000.

Some institutions have also adjusted their expectations for future rate hikes. Deutsche Bank expects moves in September, December, and March 2027, while Morgan Stanley sees two hikes along with an ECB move in the near term. Meanwhile, Bitcoin maxi Anthony Pompliano has expressed dissenting views, stating that the Federal Reserve should not raise interest rates.