It is not too late for the Fed to raise interest rates, and it can adjust the European economy in a short time. However, under such policy adjustment, it will inevitably affect the interest rate of American funds, and will also increase the capital cost of many European banks, so that these increased costs will be passed on to industrial and commercial enterprises, thus affecting consumption and investment. Therefore, the new round of Fed's interest rate hike policy in Europe and America will not help some European countries to stabilize their economies, but will increase their national consumption in a certain sense.
The purpose of this adjustment is to temporarily stabilize the European economic market.
As a representative of Europe, the United States is recognized as an economic power and a military power. Inflation has also occurred in the United States, which has affected many countries in Europe. In this case, Europe has to adjust the interest rate hike policy, which can stabilize the European economy in the short term, but it is undeniable that it is not feasible in the long run. After all, the world economy is a whole, and the economy of each country is closely related to that of other countries. If we only raise interest rates unilaterally, it will only affect some price levels and consumption in our country. abstract
Generally speaking, it is not too late for Europe and America to raise interest rates. After all, the implementation of this interest rate policy has indeed helped many European countries to establish a stable economic circle, but this situation can only be maintained for a certain period of time. As long as it reaches a certain point in time, inflation will still occur, because European countries have not yet achieved the most fundamental economy.