Gate News reports that on March 26, Benjamin Louvet, head of the commodities division at Ophi Investment Asset Management, stated in a report that the Federal Reserve faces a dilemma in its dual mandate of employment and inflation: whether to raise interest rates to combat inflation or lower them to support economic growth and employment. The analyst indicated that since rate hikes cannot alleviate supply shocks without harming economic growth, the Fed is unlikely to choose to raise rates. Additionally, the decline in income from Gulf countries, the main buyers of U.S. Treasury bonds, could weaken the U.S. debt financing capacity and force the Fed to lower interest rates or even resume bond purchases to support the economy.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
