In late October 2015, the U.S. Federal Reserve is to make a decision on the base or prime rate. Since December, 2008, it's been hovering at a historic low. Cheap money was supposed to stimulate growth. But how long can it go on?
Prices in Germany rose faster than expected in November, strengthening the case of the European Central Bank, which has argued that its economic stimulus will eventually lead to more growth and higher inflation.
The US central bank keeps moving cautiously toward a third interest rate hike — possibly in December — as it has left current rates unchanged amid efforts to balance a strong US economy with stubbornly low inflation.
The EU's central bank has decided to curb its monthly bond purchases by half. But DW's Henrik Böhme deplores that an end to what he believes is a risky zero-interest policy is not yet in sight.
The US president has nominated Jerome Powell as the new chair of the central bank. While Trump wants low rates to boost growth and the stock markets, he knows that what Wall Street values most is safe hands.
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