Comment & Analysis

Fears Fed’s higher interest rates will have no impact on inflation

The US Federal Reserve has been aggressively raising interest rates for the last 20 months in an effort to curb soaring inflation, but the economy is showing no sign of slowing down

For the past 20 months the Fed has been aggressively raising US interest rates

The US Federal Reserve had a simple last week message for investors, politicians and consumers on the day it held interest rates at their current level but signalled that the fight against inflation will grind on. The message was: “It’s not over until it’s over.”

The Fed is the world’s most important central bank, and what it does – and, more importantly, what it says – is watched and heard by every investor, policymaker and ...