Fed rate hike prospects remain uncertain; Daly focuses on the persistence of inflation shocks; Bowman advances bank regulatory reform.

Zhitong Finance APP has learned that the Federal Reserve is simultaneously advancing important adjustments in both monetary policy and bank supervision. San Francisco Fed President Daly said she supports a September rate hike to address rising inflation risks, but whether further rate hikes are needed in the future will largely depend on whether the inflationary shocks from tariffs, energy prices, and artificial intelligence (AI) investment are merely temporary or will persist and even reinforce one another. Meanwhile, Fed Vice Chair for Supervision Bowman announced that she will restructure the U.S. bank regulatory system and is considering adjusting the bank asset-size thresholds that trigger stricter capital, liquidity, and stress-testing requirements.