Goldman Sachs now expects the Federal Reserve to raise interest rates by 25 basis points at the meeting ending September 16, reversing its previous forecast for no change. The shift followed August core CPI rising 0.3% from the prior month, above the 0.2% expected, while market pricing for a September hike briefly approached 90% and was most recently about 85%. Goldman economist David Mericle said the change reflected concerns about the Fed's policy credibility and potential market disruption more than a fundamental reassessment of inflation. JPMorgan, Citigroup and Mitsubishi UFJ Financial Group also moved toward a September hike, but forecasts for subsequent meetings range from no further increases to three hikes extending into January 2027.