The Federal Reserve faces a dilemma in its dual mandate of employment and inflation

According to Jinshi News, Benjamin Louvet, an analyst at Ophi Investment Asset Management Company, stated in a report that the Federal Reserve may face a dilemma in its dual mandate of employment and inflation: should it raise interest rates to combat inflation, or lower interest rates to support economic growth and employment? He pointed out that raising interest rates cannot alleviate supply shocks without harming economic growth, so it seems unlikely that the Federal Reserve will choose to raise rates. In addition, the decline in income in Gulf countries may weaken U.S. debt financing, forcing the Federal Reserve to lower interest rates or even resume bond purchases to support the economy.

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