Fed unlikely to raise rates further due to labor market concerns, analyst says

The U.S. Federal Reserve is unlikely to pursue additional interest rate hikes, according to an analysis by Jim Smigiel, an analyst at the Nasdaq-listed financial services firm SEI (SEIC). He explained that the Fed, with its dual mandate of price stability and full employment, must consider the potential negative impact of rate hikes on the economy and the labor market. In contrast, Smigiel noted that some other global central banks, such as the ECB, are more focused on price stability, making further tightening relatively more likely. However, he added that central banks in other major economies are likely to largely follow the Fed's policy path due to concerns about exchange rate and capital market instability.