Investors fear that interest rates will be too harsh

Frankfurt The fear of a global economic slump continues to weigh on the German stock market. In the past week, the leading index Dax collapsed by 2.7 percent and slipped back below the 13,000 point mark. The reason for this was the latest, unexpectedly persistent inflation data from the USA.

Therefore, all eyes are now on the meeting of the US Federal Reserve on Wednesday after the market close in this country. Because for the Fed, price level stability is a key objective of its monetary policy, alongside a high level of employment. Investors fear that the central bank will raise interest rates so much in the fight against inflation that it will stall the economy in the world’s largest economy.