Allianz Analyst: Fed May Be Forced to Raise Rates in September

Odaily Planet Daily News Allianz Chief Economist Ludovic Subran said: "The U.S. non-farm payroll data is actually weak, but I still believe inflation will peak above 3.7%, and factors such as AI, fiscal stimulus, and the energy industry continue to support economic growth. The Federal Reserve may be forced to raise interest rates in September. I believe this is the fundamental divergence between Europe and the US."

Subran believes that after last month's rate hike, the European Central Bank will not take further action. "That was an insurance-style rate hike, but based on current data, it seems to be in the past," he said. "The traumatic effects of the (Iran) war take time to manifest, and the economy is still bearing the costs of the conflict. However, the current situation is much better than it was a few weeks ago." (Jinshi)