Deep Tide TechFlow News, May 6th, SEI analyst Jim Smigiel stated in a report that, given that the Federal Reserve has a dual mandate to support full employment and stabilize prices, a direct interest rate hike is unlikely, as raising rates could have potential negative impacts on the economy and even the labor market. Other global central banks (such as the European Central Bank) are not officially assigned a dual mandate, so they are more likely to focus heavily on price stability, making rate hikes in these regions more probable. However, it is expected that global central banks will follow the Federal Reserve's lead to some extent, because significant deviations from the Fed's interest rate path could cause instability in foreign exchange rates and capital markets in other regions. (Jin10)

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin