What is the Future Trend of Inflation in the United States
The US banking sector has experienced several unexpected events in recent times, including the collapse of Silicon Valley Bank, followed by the bankruptcy of several small and medium-sized banks. These events can be attributed to the Federal Reserve’s rapid interest rate hike of 4.75% in the past year, aimed at curbing inflation. It is noteworthy that such a drastic increase in interest rates is rare in US history, with the last significant hike occurring in 1981 when Fed Chairman Paul Volcker raised the federal funds rate by over 8.8% to more than 20%. However, the current leadership position of the US and the US dollar differs significantly from the Cold War era of 1981.