Institution: The Federal Reserve is unlikely to raise interest rates because it could harm the economy

Odaily Planet Daily News reports that SEI analyst Jim Smigiel stated in a report that, given that the Federal Reserve bears the dual mandate of supporting full employment and stabilizing prices, a direct rate hike is unlikely, as raising interest 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)