Goldman Sachs Reverses Course, Now Expects Fed Rate Hike Next Week

Goldman Sachs has withdrawn its earlier forecast that the Federal Reserve would hold interest rates steady, making it the final major bank to revise its outlook. The bank now anticipates a rate hike at the Fed's upcoming meeting next week. Goldman's reversal aligns it with other major financial institutions that had already updated their projections. The shift reflects growing consensus among Wall Street banks that the Fed will move forward with tightening monetary policy. At least one economist, however, has argued that the anticipated rate hike is driven more by Wall Street dynamics than by inflation concerns.