Brokerages Coalesce Around Rate Hike Call After Inflation Surprises

A growing number of brokerages expect the Federal Reserve to raise interest rates this week after stronger-than-expected inflation readings. The inflation data showed 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.

Goldman Sachs, J.P. Morgan, HSBC, and Deutsche Bank forecast a quarter-point hike at the Fed's September 15-16 meeting, with several 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.