Market Incident
Public · Developing
Goldman, JPMorgan, HSBC Expect Fed To Hike Rates
Goldman Sachs, JPMorgan, HSBC, and Deutsche Bank now forecast that the Federal Reserve will raise interest rates this week. Their predictions follow stronger-than-expected inflation readings, which measure how fast prices for goods and services are rising.
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Updated:
What happened
Nine major banks, including Goldman Sachs, JPMorgan, and HSBC, expect the Federal Reserve to raise interest rates by a quarter point this week. This would be the first rate hike in three years. Markets have already priced in this move. The banks' forecasts follow stronger-than-expected inflation data.
Global impact / market context
A rate hike makes borrowing more expensive, which can slow spending and affect prices of stocks, bonds, and crypto. Since markets expect it, the surprise is low, but the actual decision and future signals still matter for investors.
What to watch
- Check the Federal Reserve's announcement this week for the exact rate decision and whether it matches the expected quarter-point increase.
- Watch for any comments about future rate hikes, as more hikes would raise costs for borrowers and could pressure risk assets.
- Monitor how Bitcoin, bonds, and the stock market react after the announcement, since current prices already assume this hike.
Evidence
- Adler AM — 92% Chance of a Fed Rate Hike: Risk of a Stock Pullback
- X - cointelegraph — 🇺🇸 NEW: The Fed is expected to hike rates for the first time since 2023, a move likely to strain Chair Kevin Warsh's relationship with President Trump, per Bloomberg.
- Decrypt — Wall Street Bets on Fed Rate Hike: Here's What It Means for Bitcoin, Bonds and Trump
- X - WatcherGuru — The following banks expect the Federal Reserve to hike interest rates by 25 bps this week • UBS • HSBC • Barclays • Citigroup • Wells Fargo • Morgan Stanley • Goldman Sachs • Bank of America • JPMorgan Chase
- Catenaa News — Goldman, JPMorgan, HSBC Expect Fed To Hike Rates
- Incident timeline — 92% Chance of a Fed Rate Hike: Risk of a Stock Pullback
- Incident timeline — 🇺🇸 NEW: The Fed is expected to hike rates for the first time since 2023, a move likely to strain Chair Kevin Warsh's relationship with President Trump, per Bloomberg.
- Incident timeline — Wall Street Bets on Fed Rate Hike: Here's What It Means for Bitcoin, Bonds and Trump
- Incident timeline — The following banks expect the Federal Reserve to hike interest rates by 25 bps this week • UBS • HSBC • Barclays • Citigroup • Wells Fargo • Morgan Stanley • Goldman Sachs • Bank of America • JPMorgan Chase
- Incident timeline — Goldman, JPMorgan, HSBC Expect Fed To Hike Rates