Institution: Fed Unlikely to Raise Rates, as Doing So Could Harm the Economy

Odaily Odaily reports that SEI analyst Jim Smigil stated in a report that, given the Fed's dual mandate to support maximum employment and stable prices, a direct rate hike is unlikely because it could negatively impact the economy and, by extension, the labor market. Other global central banks (such as the European Central Bank) are not formally assigned a dual mandate, making them more likely to focus intensely on price stability, which increases the probability of rate increases in those regions. However, global central banks are generally expected to follow the Fed's lead to some extent, as significant deviations from the Fed's rate path could destabilize foreign exchange rates and capital markets in other regions. (Jin Shi)