Goldman Sachs expects the US Federal Reserve to raise interest rates by 25 basis points at its September meeting, joining a growing number of Wall Street firms that anticipate further monetary policy tightening as inflation concerns resurface, Reuters reported.
According to Reuters, Goldman Sachs reversed its earlier forecast that the Fed would leave interest rates unchanged this month. The brokerage said the change was driven mainly by market pricing, which now points to a high probability of a rate hike, as well as the likelihood that policymakers would be reluctant to surprise investors with a pause.
