5 Things to Expect from the Fed’s Interest Increase
After many years of historically low-interest rates following the 2008 financial crisis, surging inflation has forced the Federal Reserve to increase its rates.
Rate rises have implications for businesses and households alike, so here are five things to expect from the increases and the parts of the economy that may be impacted.
US Dollar Strengthening
On one level, an increase in inflation should mean that a currency loses its value.
After all, if you can buy your weekly groceries for $100 one month, but inflation means that the same grocery shop costs $110 a few weeks later, the purchasing power of a single dollar has reduced.
Oil and Other Energy Prices Rising
Oil is notorious for being one of the most volatile markets there is, and it's hit the headlines even more recently for being volatile due to the Russia-Ukraine conflict.
However, even before the conflict in Ukraine, inflation and rising interest rates pushed up the oil price.
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