Goldman Sachs, JPMorgan, HSBC, Deutsche Bank and UBS expect the Federal Reserve to raise its policy rate by 25 basis points at its September 15-16 meeting after firmer August inflation data shifted economist and market expectations. A Reuters poll found that 86 of 101 economists expected an increase, which would lift the target range to 3.75%-4.00% and mark the first hike since July 2023. Fed funds futures assigned roughly a 90% probability to a September increase. August's Consumer Price Index rose 0.4% from the prior month and 3.4% year on year, while core CPI increased 0.3%, exceeding analyst expectations. A rate increase would also push up the prime rate, raising borrowing costs for many consumer loans, while savings-account rates may increase. Expectations of tighter monetary policy could weigh on Bitcoin in the short term by supporting the dollar and Treasury yields, potentially reducing demand for riskier assets.