The Fed Raises Rates to Confront Inflation
The Federal Reserve has raised its benchmark rate by 25 basis points for the first time since 2023. Credit, markets and businesses are entering a new monetary phase.
The Federal Reserve has raised its benchmark rate by 25 basis points for the first time since 2023. Credit, markets and businesses are entering a new monetary phase.
The European Central Bank maintains its rates, but does not promise any lasting respite. With oil again nearing $100, households, businesses, and markets are already preparing for a possible tightening in September.
The yen is trading near its lowest level against the dollar since 1986, just hours before a crucial meeting of the Bank of Japan. Energy, inflation, tourism, French businesses: the ripples of this monetary crisis are already impacting the global economy.
The American Federal Reserve held its rates on July 29, but the 9 to 3 vote reveals a spectacular rift: three officials called for an immediate hike. This hard signal could weigh on the dollar, credit, Wall Street, and Europe.
Install B-Empire on your phone for the full magazine experience.
Get the biggest B-Empire stories the moment they publish. Free.