Former Fed Vice Chairman warns: Fighting inflation is not over yet, Fed may no longer predict two rate cuts

PANews reported on June 18 that Richard Clarida, former vice chairman of the Federal Reserve and current consultant to PIMCO, said that although U.S. inflation performed better than expected at the beginning of the year, it was still under great pressure due to advance stocking and accumulated tariffs. He pointed out that the average effective tariff rate in the United States rose to 15.6% in June, the highest since 1937, which may cause inflation to rise above 3%. Clarida questioned whether the Federal Reserve would still maintain its forecast of two interest rate cuts this year, and emphasized that if the market questions the independence of the new chairman, the stock and bond markets will react violently. He believes that the 10-year U.S. Treasury yield has shown the return of the "bond vigilante."