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Capitol Report: The central bank that cried wolf? Talk of higher U.S. interest rates is often just that

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Is the Fed crying wolf about higher interest rates? Or are they trying to herd investors like sheep into doing the work for them?

Two years ago, a prominent central banker suggested interest rates could rise “sooner than you think” after an unprecedented five-year stretch of easy money. Earlier this week New York Federal Reserve President William Dudley issued a similar warning to financial markets.

Bank of England Governor Mark Carney never acted on his warning in 2014. The U.K.’s key lending rate remained at 0.5% — where it had been since 2009 — and the bank actually cut it to 0.25% earlier this month.

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