Major Wall Street Banks Forecast Fed Rate Hike in September Amid Possibility of Further Increases This Year

Most major Wall Street banks forecast that the U.S. Federal Reserve will raise interest rates in September. Market attention is now turning to whether further tightening will occur before the end of the year.

On September 15 (local time), Bloomberg reported, citing a Wall Street Journal survey, that nearly all major Wall Street banks expect a Fed rate increase in September.

The majority of banks project a total interest rate hike of 50 basis points for the year. Bank of America and Deutsche Bank, along with RBC, anticipate a cumulative 75 basis point increase. One basis point equals 0.01 percentage points.

As a result, market focus is intensifying on both this week's rate hike and the possibility of additional increases by the Fed before year-end.