Opfi Investment: The Federal Reserve Faces a Dilemma in Its Dual Mandate of Employment and Inflation

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.
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