While both the Fed and the Bank of England raised interest rates by 75 basis points, their respective leaders struck different tones about what lies ahead. “These economies will suffer recession long before the Fed has caused a US economic downturn,” he said. Bloomberg Economics predicts that the global central bank rate could reach 5.5 percent in the middle of next year, up from 2.9 percent at the end of last year. In advanced economies alone, a jump to 3.5 percent from 0.1 percent is expected. The Fed benchmark in a year’s time is expected to be 2.5 percentage points above the average across other major advanced economies, the widest gap since at least 2004.
