TD Securities strategists now expect the Federal Reserve to begin a three-rate-hike cycle in September, reversing their previous forecast that the central bank would remain on hold for the rest of 2026. They expect the next two increases to come in October and January. The forecast change followed the release of U.S. August CPI data, which came in above expectations. The strategists said the data showed insufficient progress on inflation and expect the Fed’s dot plot to signal a hawkish stance, although the central bank may not provide forward guidance.