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 that the inflation rate will peak above 3.7%, and artificial intelligence, 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 real point of divergence between Europe and the United States."

Subran believes that following last month's rate hike, the European Central Bank will not take action again. "That was an insurance-style rate hike, but judging from current data, it seems to have passed," he said. "The traumatic effects of the (Iranian) war will take time to manifest, and the economy is still bearing the costs of the war, but the situation now is much better than it was a few weeks ago." (Jinshi)