Hawkish messages from the U.S. Federal Reserve (Fed), the country's central bank, at its September meeting have shifted Wall Street expectations for the interest-rate path. The Fed raised rates by 25 basis points in September, and several major banks now expect additional tightening or fewer rate cuts than previously forecast. NatWest and Swedbank expect another 25-basis-point increase in October, while Standard Chartered and Commerzbank see a 25-basis-point hike in December. Goldman Sachs also added an October hike to its forecast and moved its projected subsequent cuts to September and December 2027 and March 2028. Morgan Stanley expects two further 25-basis-point increases by the first quarter of 2027. The median analyst forecast points to one additional 25-basis-point increase, but expectations for its timing range from October to December. ANZ, Bank of America, RBC, TD, BNP Paribas, Deutsche Bank, Morgan Stanley, and Societe Generale expect 50 basis points of additional tightening, while JPMorgan, Barclays, UBS, Goldman Sachs, and Standard Chartered forecast another 25 basis points. ING, SEB, and Citi still view the September increase as the final move in the current tightening cycle. The shift has weakened expectations for a single additional rate increase and focused investors on whether the next hike will occur in October or December. This is not investment advice.