The market surmises that Walsh's interest rate hikes in September are still in doubt

On 31 August, while the market speculated that Federal Reserve Chairman Kevin Walsh was preparing to raise interest rates, bond investors such as ABN AMRO Investment Solutions and Brandywine Global Investment Management were sceptical. After a high-profile speech by Walsh last Friday, reiterating his determination to reduce inflation, the swap traders felt that the Central Bank’s next decision-making session in mid-September was more likely to raise interest than no interest. While the final decision will depend to a large extent on employment data to be published this week and on inflation data later, the two-year, policy-sensitive US Treasury debt rate of return has risen significantly, with the largest increase in over two months. For ABN AMRO ' s Christophe Boucher, Walsh ' s statements were not enough to convince him that the decision-making officer would eventually act. He is currently avoiding long-term bonds, which are particularly vulnerable to shocks when the market fears that the Fed will not manage inflationary pressures. Boucher, the company's investment director, stated that doubts about credibility might resurface if Walsh did not support the September hike and inflation remained sticky。