Financial Institutions Expect Fed Rate Hike as Inflation Concerns Mount

A growing number of brokerages are now expecting the Federal Reserve to raise interest rates this week in response to stronger-than-expected inflation readings.

Goldman Sachs, J.P. Morgan, HSBC, and Deutsche Bank have forecast a quarter-point hike at the Fed's September 15-16 meeting, with some expecting rates to stay higher for longer to bring inflation back to its 2% target.

The shift follows data showing U.S. consumer and producer prices rose more than expected in August, while oil prices climbed above $100 a barrel amid renewed hostilities in the Middle East, raising concerns that inflation pressures could remain elevated.