Lates News

SEI analyst Jim Smithers stated in a report that given the dual mandate of the Federal Reserve to support full employment and stable prices, a direct interest rate hike is unlikely because it could have potential negative effects on the economy and even the labor market. Other global central banks (such as the European Central Bank) have not been formally given a dual mandate, so they are more likely to focus heavily on price stability, making it more likely for them to raise interest rates. However, it is expected that global central banks will to some extent follow the Federal Reserve's lead, as deviating significantly from the Fed's rate path could make foreign exchange rates and capital markets in other regions unstable.