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Global interest rates surge sparks alarm; economist warns of recurring risks
Dagens NyheterLO·2 days ago
The US central bank may raise interest rates on Wednesday, according to a report citing a chief economist. The exact decision is uncertain, but a hike would mark a tightening of monetary policy, likely impacting global markets.
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The Federal Reserve is highly likely to raise interest rates as early as Wednesday to counter persistent inflation, marking the first hike since July 2023. This decision will test the independence and credibility of new Fed Chair Kevin Warsh amid reported pressure from President Trump and Treasury Secretary Scott Bessent. The magnitude and certainty of the hike remain unclear, but it signals a hawkish shift in monetary policy.