Bloomberg Podcasts · Fed Faces New Pressure to Hike Rates as Price Risks Rebound

1. 1. The Fed is expected to raise rates at the latest in October, possibly September, driven by persistent inflation and robust oil prices.
2. 2. Core PCE has been above 3% for an extended period, which is the real elephant in the room for the Fed.
3. 3. Kevin Warsh's congressional testimony revealed a tightening bias, stating the committee will examine tools to control inflation.
4. 4. The Bank of Japan may accelerate rate hikes, with leaks suggesting a possible move in October instead of December.
5. 5. If the BOJ sounds too dovish this week and dollar-yen rises, the speaker would fade that move, expecting intervention.
6. 6. The US dollar is supported by high oil prices, as the US is a net exporter and benefits from higher export revenues.