Kaplan says Fed may need September rate hike if inflation persists

Goldman Sachs Vice Chairman and former Dallas Fed President Robert Kaplan said an autumn move would be prudent, warning persistent inflation could prompt multiple rate increases as half of Fed officials expect a hike by year-end.

Summary

Goldman Sachs Vice Chairman and former Dallas Fed President Robert Kaplan said the Federal Reserve could need to raise interest rates as early as September if inflation does not cool. He said a September or broader autumn move would be prudent and cautioned that persistent inflation could require a series of two or three hikes. The report also said half of Fed officials expect a rate increase by year-end, highlighting how concern over price pressures is shaping the policy outlook.

Terms & Concepts
  • Federal Reserve: The U.S. central bank, which sets monetary policy including interest rates.
  • inflation: A sustained increase in prices that can erode purchasing power and influence central bank policy.
  • hawkish: Describes a policy stance that favors higher interest rates or tighter monetary conditions to control inflation.