Agency: Federal Reserve ' s July increase window opened late until September or at risk of political criticism

On 29 July, James Logan, Joint Chief Investment Officer and Director of Investment Management and Research of the Investment Bank, D.A. Davidson, stated that, since the last meeting of the Federal Reserve, inflation data had been moderate and employment growth modest, but that the escalation of the military conflict between the United States and Iraq in July had disrupted those positive trends. This means that the inflation progress achieved at the overall level in June is likely to reverse, and the Fed must assess whether inflation trends at the core level are more sustainable. If the Fed determines that higher inflation expectations are emerging, they should raise interest rates in July, not until September. In particular, taking into account the mid-term elections to be held later this year, action at that time could generate political criticism. Kim Xian