September rate hike likely due to risk management, Claudia Sahm notes

September rate hike likely due to risk management, Claudia Sahm notes
Fed risk management points to hike

Risk management remains the Federal Reserve’s primary reasoning for a potential rate hike in September, which suggests another increase may occur next week. Claudia Sahm stated that markets currently put the odds of a hike at one in five.

Claudia Sahm has previously called for the FOMC to provide more timely explanations of its policy decisions, after the committee focused on expediting the path toward its targets in recent meetings. In a separate discussion, Sahm questioned statements from Kevin Hassett about measuring economic sentiment through observed American behavior. More frequent commentary by Sahm comes as market participants assess the likelihood of additional Federal Reserve rate hikes.

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