French Economists Expect Fed Rate Hikes This Year Despite Weak Jobs Data; ECB Policy May Diverge

According to chief economists from Allianz and BNP Paribas, the U.S. Federal Reserve needs to raise interest rates this year despite Thursday's data showing weakness in the American labor market. The analysts, speaking at an event in Aix-en-Provence, France, noted that while the European Central Bank is not inclined to tighten monetary policy and may have already completed its rate-hiking cycle, the U.S. faces persistent inflation pressures that require further Fed action.
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