Allianz analyst: Fed may have to raise interest rates in September

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Golden Finance reported that on July 3, Allianz chief economist Ludovic Subran said: “The U.S. non-farm employment data is actually weak, but I still believe that the inflation rate will peak at above 3.7%, and that artificial intelligence, fiscal stimulus, and the energy industry are still supporting economic growth. The Federal Reserve may have to raise rates again in September. I think this is where the real divergence between Europe and the U.S. lies.” Subran believes that after last month’s rate hike, the European Central Bank will not take action again. “That was an insurance-type rate hike, but judging from the data now, it seems that it’s already behind us,” he said. “The trauma effects of the (Iran) war need time to become apparent. The economy is still paying the price of the war, but things are much better now than they were a few weeks ago.”
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