Agency: Increase in interest rate pressure on the Federal Reserve

In a report on 28 July, Anthony Willis, Senior Economist for Natural Investment, stated that pressure on Federal Reserve policymakers to tighten policies had increased as inflation levels in the United States remained significantly above target, while the economy and the labour market remained resilient. Willis said: “However, before the effects of inflation become clearer, policymakers may wish to temporarily ignore the effects of the recent surge in oil prices.” Nevertheless, the broader direction is clear: Under the leadership of Walsh, the Fed is taking a more hawk stance. The market currently expects the Fed to raise interest on Wednesday at a rate of 38 per cent, and has fully denominated the possibility of a September increase。