Brokerage Firms Expect Fed Rate Hike in December

Major global brokerage firms expect the Federal Reserve to raise interest rates at least one more time this year, with most forecasting a hike in December. According to Goldman Sachs' updated forecast, the Fed will increase rates by 25 basis points in December.

Data released on Wednesday showed that the Personal Consumption Expenditures Price Index for August rose by 3.4% year-on-year, lower than the 3.7% expected by economists surveyed by Reuters. This has weakened market expectations for further tightening in the near term.

The probability of another 25 basis point hike in October is currently around 38%, down from nearly 71% a week ago, according to CME Group's FedWatch tool.