Feds raised the rate, but it is unlikely to curb inflation

In an effort to halt rising inflation, the Federal Reserve (Fed) has raised interest rates by half a percentage point. This is the largest increase since 2000.

In March, interest rates in the US were also raised, then by a quarter of a percentage point. Like Europe, the U.S. is facing high inflation.

Rising inflation is feared to cause countries to face stagflation, with the economy shrinking while inflation continues to rise. The Fed is also reducing the amount of debt it buys.

During the corona crisis, a lot of money was invested in the economy both in Europe and in the USA, among other things by buying up debt securities.