Dusseldorf On Wednesday, the US Federal Reserve (Fed) is expected to raise interest rates for the fourth time this year by 0.75 percentage points – to a range of 3.75 to 4.0 percent. This is considered agreed among experts. The aim is to lower the high US inflation rate.
At the same time, many stockbrokers expect that the Fed will soon take smaller interest rate hikes. If that turns out to be true, there should be a relief rally on the markets, says New York correspondent Astrid Dörner in the podcast Handelsblatt Today.
The central bankers have to strike a difficult balance. On the one hand, you don’t want to let up on the fight against inflation too soon. On the other hand, there is increasing concern that the Fed’s tight monetary policy could trigger an accident on the markets.
Analysts have been warning for weeks that it is becoming increasingly difficult to bring buyers and sellers together in the important US Treasury bond market. So the Fed has to weigh things up carefully, as Dörner says in an interview with Lena Jesberg: “The big question is: How can we continue to fight inflation without taking it too far?”
Top jobs of the day
Find the best jobs now and
be notified by email.
More: Why the Fed faces an impossible mission
We have an exclusive subscription offer for you as a Handelsblatt Today listener: test Handelsblatt Premium for 4 weeks for 1 € and stay informed about what’s moving the financial markets. More information is available here.
If you have any comments, questions, criticism or praise for this episode, please email us at: [email protected]
We can now be reached on WhatsApp, Signal and Telegram via the following number: 01523 – 80 99 427