Institution: Fed Rate Hike Unlikely as It May Harm the Economy

Odaily Planet Daily News SEI analyst Jim Smigiel stated in a report that, given the Federal Reserve's dual mandate to support maximum employment and maintain price stability, a direct rate hike is unlikely due to its potential negative impact on the economy and 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, thereby increasing the possibility of rate hikes in those regions. However, it is expected that global central banks will follow the Fed's lead to some extent, as significant deviations from the Fed's interest rate path could destabilize foreign exchange rates and capital markets elsewhere. (Jinshi)