Analysis: The Federal Reserve may face a dilemma regarding its dual mandate

Odaily Planet Daily reports that analyst Benjamin Louvet of OFI Investment Asset Management stated in a report that the Federal Reserve may face a dilemma in its dual mandate of employment and inflation: should it raise interest rates to combat inflation or lower them to support economic growth and employment? The head of the commodities department said, “Since rate hikes cannot ease supply shocks without harming economic growth, the Fed seems unlikely to choose to raise rates.” Additionally, the decline in income from Gulf countries, the main buyers of U.S. Treasury bonds, could weaken U.S. debt financing and force the Fed to lower rates or even resume bond purchases to support the economy. (Jin10)