Goldman Sachs: If Inflation Does Not Cool, the Fed May Raise Rates as Early as September

Odaily Odaily Planet Daily News: Goldman Sachs Vice Chairman and former Dallas Federal Reserve President Robert Kaplan stated that if inflation remains persistently high, the Federal Reserve may need to raise interest rates as early as September. Kaplan said, "If inflation data does not cool down between now and September, it would be wise for the Fed to take action in September or autumn. That would be the more prudent approach." After Fed Chair Powell indicated he is still focused on combating inflation, the market turned hawkish. Traders sold short-term Treasuries, pushing up some yields. Powell's stance was reinforced by individual Fed members' forecasts, with half expecting a rate hike before year-end. Kaplan stated that if inflation remains stubborn, it suggests monetary policy is still too loose. He also noted, "The Fed rarely acts alone on policy; rate hikes often come in series of two or three. So, I think if you act in September, you need to be prepared. There could be one or two more." (Jin Shi)