Wall Street Banks Predict Fed Rate Hike Amid Inflation Fears

Wall Street banks Goldman Sachs and J.P. Morgan have revised their predictions for interest rate hikes from the Federal Reserve, citing rising inflationary pressures. In a note released on Friday, Goldman Sachs shifted its forecast to a 25-basis-point rate hike during the Fed's upcoming meeting, deviating from its earlier expectation of unchanged rates.

J.P. Morgan also forecasts hikes in both September and December to address inflation worries, which have been exacerbated by climbing oil prices. The persistent inflationary pressures have led J.P. Morgan to adjust its expectations for the Federal Reserve's policy rate.