Fed faces energy and tariff risks on inflation, Claudia Sahm warns

Fed faces energy and tariff risks on inflation, Claudia Sahm warns
Fed may hike rates amid inflation risks

Claudia Sahm raises concerns about inflation ahead of next week's Federal Reserve meeting.

She now believes the Fed may need to raise rates, citing uncertainty that inflation will return to 2% in the next year or two without intervention. Sahm flags upside risks stemming from energy markets, tariffs, and the ongoing buildout in artificial intelligence.

Sahm previously reviewed potential triggers for a Federal Reserve rate hike ahead of new CPI data, citing recent positive inflation news in a recent post. She has also called for Warsh to clarify his proposed Treasury-Fed Accord at the Jackson Hole event, referencing recent policy actions in another post here. These comments add context to her current focus on inflation and Fed policy.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.