Analyst: The Federal Reserve may face a dilemma due to its dual mandate.

date
26/03/2026
Benjamin Louvet of Ofi Invest Asset Management 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 should it lower interest rates to support growth and employment? The head of commodities noted, "Since raising interest rates cannot buffer supply shocks without harming growth, the Federal Reserve seems unlikely to choose to raise interest rates." Louvet also mentioned that the decrease in income for Gulf countries, which are major buyers of U.S. Treasury bonds, could weaken U.S. debt financing and force the Federal Reserve to lower interest rates, or even resume bond purchases to support the economy.