US Fed may have to hike by September if inflation doesn't cool, says analyst

The United States Federal Reserve held interest rates steady on Wednesday (Jun 17) but struck a more hawkish tone under new chair Kevin Warsh, with nine officials projecting at least one rate hike this year. Speaking to CNA's Asia First, Evercore ISI’s vice chairman of equities Krishna Guha says he was surprised the Fed's message was "as hawkish as it was" and warns that Warsh may be forced to raise rates by September if upcoming inflation data fails to provide reassurance. He also cautions that the Fed's retreat from forward guidance could lead to greater market volatility and uncertainty.

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