Ludovic Subran, chief economist at Allianz, said the US Federal Reserve (FED) may need to raise interest rates in September.
Sablan said the non-farm employment figures released in the US were actually weak. Despite this, he said artificial intelligence, fiscal spending and energy investments continue to support the U.S. economy, and said inflation could peak above 3.7%.
Sablan said the situation could force the Fed to raise rates in September, adding: “I think this is the main issue in Europe and the US.”
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Regarding the European Central Bank (ECB), Soubran said he did not expect the bank to take any new measures following last month’s interest rate hike. “This was an insurance rate hike, but looking at the data now, I think that process appears to be over,” Sablan said.
Soubran also said that the economic impact of the war with Iran will be felt more clearly over time. He added that while the economy continues to bear the costs of the war, the current situation is much better than it was a few weeks ago.
*This is not investment advice.
