Fed Rate Hike Window Opens in July; Delay to September Risks Political Backlash

According to Jin10 and D.A. Davidson, James Lagen, co-chief investment officer of the investment bank, stated that while inflation remains moderate and employment growth steady since the Fed's last meeting, the July escalation of military tensions in the Middle East threatens these gains. The Fed should assess whether core inflation pressures are becoming more persistent. If elevated inflation expectations are forming, the Fed should act in July rather than wait until September, particularly given the potential for political criticism ahead of mid-term elections later this year.
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