Agency: The Federal Reserve is unlikely to raise interest rates as it could harm the economy

Golden Ten Data reported on May 6 that SEI analyst Jim Smigiel stated in a report that, given the Federal Reserve's dual mandate to support full employment and stabilize prices, a direct interest rate hike is unlikely, as such an increase could have potential negative effects on the economy and the labor market. Other global central banks (such as the European Central Bank) have not been formally assigned a dual mandate, so they are more likely to focus heavily on price stability, making interest rate hikes in these regions more likely. However, it is expected that global central banks will follow the Federal Reserve’s lead to some extent, because significant deviations from the Federal Reserve’s interest rate path could destabilize foreign exchange rates and capital markets in other regions.