Fed Rate Hike Window Opens in July Amid Inflation and Political Risks

D.A. Davidson warns US-Iran conflict may reverse June inflation progress, prompting a potential July rate hike to avoid September midterm election political risks.

Woofun AI notes that D.A. Davidson co-chief investment officer James Ragan stated that while recent inflation and employment data were moderate, the escalation of military conflict between the U.S. and Iran in July has disrupted these trends. Ragan argues that if higher inflation expectations form, the Federal Reserve should raise interest rates in July rather than waiting until September to mitigate political risks associated with the midterm elections.