Opinion: The risk of the Federal Reserve raising interest rates has clearly increased

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Golden Finance reports that on June 18th, the Federal Reserve unexpectedly shifted to a more aggressive interest rate hike stance, which will undoubtedly disappoint President Trump, while also indicating that Fed officials' concerns about persistent high inflation are intensifying. The latest dot plot shows that 9 Fed officials support rate hikes this year, with 6 supporting two or more hikes of 25 basis points each. This is a stark contrast to March, when no policymakers predicted rate hikes, and the committee as a whole expected one rate cut by 2026. Additionally, Waller also emphasized the Fed's determination to fight inflation. Deutsche Bank's Chief U.S. Economist Matthew Luzzetti stated that considering this information, the risk of the Fed needing to raise interest rates has clearly increased. Financial markets also agree. After the Fed issued a statement and Waller's speech, stock markets plummeted and bond yields rose.
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