A vast majority of top financial institutions anticipate a borrowing cost increase next week, with most predicting a 50 basis point move. Goldman Sachs and JPMorgan now forecast a 25 bp hike after hotter August inflation and a climb in Brent crude prices to $107. CME FedWatch prices an 86.7% probability of a 25 bp increase at the September 16 meeting, while a poll of 101 economists shows 86 expect a hike to a 3.75% to 4.00% range.

President Donald Trump stated the U.S. should have the lowest interest rates in the world based on the nation's credit strength. White House adviser Kevin Hassett urged Fed Chair Kevin Warsh to leave rates unchanged to preserve central bank independence before the midterms, noting the Fed has rarely hiked before an election since 1913. Warsh remains focused on price stability facing stubborn inflation and oil supply shocks following Iraqi drone attacks on Saudi Arabia's East-West pipeline.