The US Federal Reserve (Fed) wants to tighten its monetary policy faster, according to Handelsblatt. This could also be reflected in Europe at higher market rates, which will have unpleasant consequences for the ECB, the same report said.
Like the ECB, the US Federal Reserve fell far short of its inflation forecasts last year.
In March it still assumed that the inflation rate in 2021 would be 2.4% on average – in December it feared an annual average of 5.3%. In the last month of last year, consumer prices rose by 7.0%.
The miscalculation has led to a re-examination of the case by US decision-makers, which could also have huge consequences for Europe.
Because market rates in the US could rise significantly, notes Handelsblatt.
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Source From: Capital
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