Goldman Sachs: If inflation does not cool down, the Fed is expected to raise interest rates as early as September.

Odaily Odaily reports that Goldman Sachs Vice Chairman and former Dallas Federal Reserve President Robert Kaplan stated that if inflation remains high, the Federal Reserve may need to raise interest rates as early as September. Kaplan said, "If inflation data doesn't cool down between now and September, it would be wise for the Fed to act in September or the fall. That would be a more prudent approach." The market turned hawkish after Fed Chairman Warsh hinted at a continued focus on combating inflation. Traders sold short-term Treasury bonds, pushing up some yields. Warsh's remarks were reinforced by individual forecasts from Fed members, half of whom expect a rate hike before the end of the year. Kaplan stated that if inflation remains stubborn, it indicates that monetary policy is still too loose. He also pointed out, "The Fed's policy actions are rarely one-off operations; rate hikes often come in series of two or three. So I think if you act in September, you need to be prepared. There might be one or two more." (Jinshi)