The great nervousness before the turnaround in interest rates

Frankfurt Actually, Jerome Powell said it all. The head of the US Federal Reserve (Fed) said when he was nominated for a second term last week that he wanted to fight inflation with all his might. Economists have since assumed that the Fed will raise interest rates four times this year. This is exactly what the interest rate expectations on the futures markets reflect.

Nevertheless, nervousness is increasing ahead of the next interest rate meeting of central bankers in Washington next Wednesday, although the first hike is not expected until March. In just a few months, the Fed could also be ready to no longer replace expiring bonds. This results in a huge demand for interest-bearing securities.

Against this background, both bond and stock markets came under pressure on Tuesday. Investors sold both interest and equity securities, and not just in the US.