The Federal Reserve's rate hike window opens in July, facing the risk of political criticism in September

According to Jinshi reports, D.A. Davidson's co-chief investment officer James Ragan stated that since the last Federal Reserve meeting, inflation data has been moderate and employment growth has been modest, but the escalation of military conflict between the U.S. and Iran in July has disrupted these positive trends. This means that the progress made in inflation in June may reverse, and the Federal Reserve needs to assess the persistence of core inflation trends.

If it is determined that higher inflation expectations are forming, they should raise interest rates in July rather than wait until September, especially considering the political risks of the midterm elections.