Institution: The Federal Reserve opens the window for a rate hike in July; delaying until September may face political criticism.

Golden Ten Data, July 29 | James Ragan, Co-Chief Investment Officer and Director of Investment Management and Research at investment bank D.A. Davidson, stated that since the last Federal Reserve meeting, inflation data has been moderate and employment growth modest. However, the escalation of U.S.-Iran military conflict in July disrupted these positive trends. This means that the overall inflation progress achieved in June could be reversed, and the Federal Reserve must assess whether the core inflation trend is more persistent. If the Fed determines that higher inflation expectations are forming, they should raise interest rates in July rather than wait until September. This is especially important considering that the midterm elections will be held later this year, when taking action may attract political criticism.