BlockBeats News, June 18th - Goldman Sachs Group Vice Chairman and former Dallas Federal Reserve President Kaplan stated that if inflation remains high, the Fed may need to raise interest rates as early as September.

Kaplan said, "If inflation data between now and September does not cool down, it would be wise for the Fed to take action in September or the fall. That would be the more prudent thing to do." After Fed Chair Powell hinted at remaining focused on combating inflation, the market turned hawkish. Traders sold short-term government bonds, causing some yields to rise. Powell's stance was reinforced by individual Fed member forecasts, with half of them expecting a rate hike by the end of the year.

Kaplan stated that if inflation remains stubborn, it indicates that monetary policy is still too loose. He also pointed out, "Fed policy actions are rarely one-off, and rate hikes often occur in a series of two or three. So, I think if you act in September, you need to be prepared. There may be one or two more."