Federal Reserve Chair Kevin Woods Signals Possible September Rate Hike

Federal Reserve Chair Kevin Woods indicated that the central bank could raise its policy rate in September if inflation data remain elevated, according to an exclusive Financial Times report. Markets have already pushed long‑term U.S. bond yields to their highest levels since 2007, reflecting concerns over limited guidance from the Fed.

Woods acknowledged early‑term mistakes in communicating the Fed’s price‑stability agenda and said the bank will keep the benchmark rate in the 3.5‑3.75% range for now. He also signaled a plan to cut the frequency of policy meetings and has created several task forces, one of which will focus on improving communication with investors. Despite the uncertainty, inflation‑expectation indices have stayed low, suggesting investors still view the Fed as committed to its 2% inflation target.