The Federal Reserve is expected to raise interest rates again this year, even as recent labor market data signals a cooling economy, according to two chief economists cited by Bloomberg.
This stance contrasts sharply with the European Central Bank, which shows little urgency to tighten policy further, highlighting a growing divergence in monetary policy between the world's two largest central banks.
The split in policy trajectories comes as US employment figures released on Thursday pointed to a weakening labor market.
Despite this softening, the economists argue that the Fed's mandate and current inflation dynamics still necessitate further rate hikes.
Meanwhile, the ECB is adopting a more measured approach, reflecting different economic pressures and growth outlooks in the eurozone.
This policy divergence has significant implications for global capital flows and currency markets.