50 years ago, many things were similar to what they are now: the economy weakened with high inflation, the central banks hesitated for a long time. In the end, US Federal Reserve Chairman Paul Volcker was forced to raise interest rates to 20 percent.
The US Federal Reserve Fed makes serious. On Wednesday evening, it is expected to raise key interest rates by half a percentage point to a range of 0.75 to 1.0 percent. That would be the strongest increase in 22 years. The outlook of the Fed boss is also exciting Jerome Powell expected.
Market observers assume that the Fed will raise interest rates in several steps to up to three percent this year. The reason is the strong inflation. The Fed also wants to quickly reduce its balance sheet, which has swollen to nine trillion dollars, i.e. no longer buy or replace bonds.
