1344 GMT - The U.S. Federal Reserve could face a dilemma with its dual mandate regarding employment and inflation: Should it raise interest rates to combat inflation or lower them to support growth and employment?, says Ofi Invest Asset Management's Benjamin Louvet in a note. "Since an interest rate hike cannot cushion the supply shock without harming growth, it seems unlikely that the Fed will opt for a rate increase," the head of commodities says. Moreover, declining revenues from the Gulf states, which are major buyers of U.S. Treasury bonds, could also weaken U.S. debt financing and force the Fed to lower interest rates or even resume bond purchases to support the economy, Louvet says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

March 26, 2026 09:44 ET (13:44 GMT)

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