Goldman Sachs Flips Fed Decision Forecast Amid Rising Inflation Pressures

Goldman Sachs has updated its forecast for the Federal Reserve's upcoming meeting, now expecting a 25-basis-point rate increase. The bank previously predicted no change in interest rates.

The shift follows recent data showing inflationary pressures and higher oil prices. August's Consumer Price Index (CPI) rose 0.4% from July and 3.4% from the same period last year, exceeding expectations.

Goldman Sachs' decision not to revise its underlying inflation outlook is notable, as it suggests that the bank believes the current rate of inflation is manageable within the existing policy framework.