Europe’s currency crisis

By Aahil

September 26, 2022

Finance

The price of Stocks fell quickly and the output of  bonds rose and the dollar became strong.

The Federal Reserve’s signal that its battle with inflation could result in much higher interest rates and a recession.

The Fed has increased  rates by another three-quarters of a point and other central banks raised their own interest rates in order to fight with global inflation trends.

European markets were down more, with the U.K. FTSE and German DAX both closed down about 2%, anid French CAC off 2.3%.

The Bank of England gave a warning that the country was already in a recession.

The U.K. government also surprised markets and announced to sweep tax cuts and investment incentives to help its economy.

The Fed raised interest rates by three-quarters of a point and  also forecast that the funds rate will rise to a high 4.6% by early next year.

New minimum tax would affect Berkshire Hathaway and Amazon hardest