The Federal Reserve (U.S. central bank) has prompted a more hawkish reassessment of its interest-rate outlook since raising rates by 25 basis points at its September meeting. Goldman Sachs, Morgan Stanley, NatWest, Rabobank, Swedbank and Commerzbank have all moved their forecasts in a more hawkish direction. NatWest and Swedbank expect another 25-basis-point increase in October, while Standard Chartered and Commerzbank anticipate one in December. Goldman Sachs added an October hike to its forecast and moved its expected subsequent rate 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 calls for another 25 basis points of tightening, although views on 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 continue to view the September increase as the final move in the current tightening cycle. Overall, expectations for a single additional rate hike have weakened, leaving investors focused on whether the next increase will occur in October or December. This is not investment advice.