Fed continues to raise interest rates to counter inflation
Federal Reserve raises interest rates |
US Federal Reserve raised the interest rate by 50 basis points for the first time since 2000 and reached 1% from 0.5%, which is a significant increase that the Fed is adopting to counter high inflation.
We find that there are expectations that interest rates will rise in the short term to 1.9% by the end of 2022, and the following are the dates of the upcoming Federal Reserve meetings:
June 15, July 27, September 21, November 2nd, and December 14.
In addition to the possibility of holding exceptional meetings if necessary, and we find that some European countries enjoy negative and zero interest rates, which is likely to change for the first time since 2014 against the backdrop of the expected US federal hikes, the spread of global price inflation and the continuing repercussions of Russia’s open war on Ukraine.
In the short term, it is likely that interest increases around the world will continue to curb inflation, and that it will return in the long term to decline again due to structural factors, including an increase in savings and retirement rates, which leads to an abundance of the money supply due to the increase in the world’s population over 50 years from 25% to 40% in 2100.
We find that the Fed made the interest rate reach 1%, and this is the second hike since 2018, and its most important goals are:
The move to raise interest rates aims to fight inflation, and we are now waiting for the market's reaction.
Raising interest is a move that markets do not like because it withdraws liquidity and reduces expansion.
Waiting for the followers in the comments to benefit from the impact of the increase in interest rates on the dollar in America within their society.
Comments
Post a Comment