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This week, the market not only digested the fact that the Federal Reserve continued to raise interest rates, but central banks of various countries also raised interest rates drastically. The global determination to suppress inflation is very strong. This time, the Federal Reserve raised interest rates.
Come on, how far can the interest rate hike cycle go? Let's review the past performance of the interest rate hike cycle in the United States.
The United States has experienced six interest rate hike cycles since 1980s. The main countermeasures are economic overheating, including suppressing soaring prices, internet bubble and real estate bubble. greater part
Each interest rate hike cycle is one to two years, and the longest one is in 2015. The Federal Reserve withdrew from the market after coping with the financial tsunami, and Yellen has been gradually raising interest rates until 2018.
For three years, the interest rate increased from zero to 2.25% and peaked. The biggest range of interest rate increase is Greenspan's era, which has increased from 1% to 5.25% since 2004, with a huge increase.
4.25%, which was rated as saving the collapse of the US dollar that year. When the US stock market experienced the bursting of the dot-com bubble and the stock market was weak, it relied on high interest rates to stabilize the performance of US dollar assets, thus avoiding the global hegemony of US debt.
Collapse of status.
This time, the world has experienced unprecedented rescue of the market by printing silver paper. Since March, the Federal Reserve has continuously raised interest rates to 2.5%. It is believed that it will raise interest rates by another 0.75% to 3.25% on the 22nd of this month, and it is similar to that.
The information reached its peak when it rose to 4.25% in 2023. In other words, the rate of interest rate increase this time is as urgent as the rate increase cycle after the bursting of the dot-com bubble that year.
Fierce, the Fed's determination to control inflation will be as fierce as the old one.
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