Goldman Sachs Sees 25 Basis Point Rate Hike as Inflation Concerns Resurface

Goldman Sachs has revised its forecast for US interest rates, anticipating that the Federal Reserve will raise rates by 25 basis points at its September meeting.

This change comes amid growing concerns about inflation, with recent data showing stronger-than-expected U.S. producer price increases.

The combination of firmer price pressures and rising energy costs has prompted investors to increase their expectations for further Fed rate hikes.

Market pricing now points to an 87% probability of a 25-basis-point rate increase at the September meeting, up from around 70% before the latest economic data.