Wall Street Banks Urge Rate Hike as Inflation Fears Grow

Wall Street banks are urging the Federal Reserve to hike interest rates in response to rising inflationary pressures. Goldman Sachs and J.P. Morgan have revised their projections, anticipating a rate increase following unexpected increases in consumer and producer prices.

According to Goldman Sachs' Friday note, the bank now expects a 25-basis-point rate hike during the Fed's upcoming meeting, deviating from its earlier forecast for unchanged rates. This shift aligns with a more hawkish stance in light of rising inflation readings.

J.P. Morgan forecasts hikes in both September and December to address inflation worries, citing persistent inflationary pressures including climbing oil prices.