On June 15, DBS Bank said that the Federal Reserve may raise interest rates in July after keeping rates unchanged in June.
The bank’s chief economist Taimur Baig and others said: “Our key conclusion from the June meeting is that there is at least one more chance to raise interest rates. If the labor market does not show obvious signs of weakness, there may be two more rate hikes by 25 basis points each time.
Signs that inflation is fading may not be enough, they said, as persistent labor market tightness has the Fed concerned that consumer prices could pick up.