Svmuu News Goldman Sachs Kaplan, vice chairman of the group and former president of the Federal Reserve Bank of Dallas, said that if inflation remains high, the Federal Reserve may need to raise interest rates as early as September.Kaplan said, “If inflation data does not cool off between now and September, Federal Reserve would be wise to take action in September or the fall. That would be the safer approach.” Markets turned hawkish after Federal Reserve Chairman Wash hinted that the bank remains focused on fighting inflation.Traders sold short-term Treasury bonds, pushing up some yields. Wash’s remarks were reinforced by individual forecasts from members of the Federal Reserve, half of whom expect a rate hike before the end of the year. Kaplan noted that if inflation remains stubborn, it would indicate that monetary policy is still too accommodative.He also noted: “Policy actions by Federal Reserve are rarely one-off moves; rate hikes tend to come in series of two or three. So I think that if you act in September, you need to be prepared. There may be one or two more.” (Jin Shi)