Wall Street Banks Predict 25 Bps Rate Hike Amid Rising Inflation Expectations
Nine major Wall Street institutions are predicting a Federal Reserve interest rate hike of 25 basis points (bps) this week, according to the latest CME Fedwatch tool. The list includes UBS, HSBC, Barclays, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase.
Both JPMorgan and Goldman Sachs dropped their hold calls for a 25 bps hike and are now expecting increases in September. HSBC sees September and December hikes, while Deutsche Bank expects moves in September, December, and March 2027.
The Federal Open Market Committee (FOMC) starts its two-day meeting on Sept. 15, with the rate decision due on Sept. 16. Bitcoin's price is currently hovering near $76,700 after shorts lost $100 million in 30 minutes yesterday.