Fed Rate Hike Predicted as Inflation Concerns Mount

Goldman Sachs and J.P. Morgan are among several Wall Street banks now predicting a U.S. Federal Reserve rate hike this week.

The change in forecast comes after recent data showed higher-than-expected inflation readings, with consumer and producer prices rising more than expected in August.

The latest figures have sparked concerns that the Fed's 2% inflation target may be harder to reach.

According to Goldman Sachs economist David Mericle, the Federal Open Market Committee will likely resist surprising markets by raising rates this week.