The big question: Why is the European Central Bank hiking rates when the Fed is not?

🇺🇸 MarketWatch (US) —

AI Summary

The European Central Bank raised interest rates for the first time since 2023, choosing to increase rates amid a supply shock unlike the Federal Reserve which is holding steady. This move highlights divergent monetary policies between the ECB and the Fed.

The European Central Bank, in hiking interest rates on Thursday for the first time since 2023, is making a choice the Federal Reserve is not: to increase rates into a supply shock.

World Politics Markets ECB interest rates Federal Reserve monetary policy supply shock

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