US interest rates: after the lift-off, the crash?

US interest rates have finally been raised. But years of ultra-loose monetary policy have blown up bubbles all over the place. How long before they burst?

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Finally. Ever since the benchmark US short-term interest rate, the federal funds rate, fell to a record low of 0%-0.25% in 2009, the Federal Reserve has "repeatedly made optimistic forecasts about when they would start rising, only to delay the big day again and again", says The Economist. Now we finally have lift-off. Last Wednesday, the US central bank lifted the funds rate by 0.25% to a new range of 0.25%-0.5%. It was the first such rate hike since June 2006.

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Andrew Van Sickle
Editor, MoneyWeek

Andrew is the editor of MoneyWeek magazine. He grew up in Vienna and studied at the University of St Andrews, where he gained a first-class MA in geography & international relations.

After graduating he began to contribute to the foreign page of The Week and soon afterwards joined MoneyWeek at its inception in October 2000. He helped Merryn Somerset Webb establish it as Britain’s best-selling financial magazine, contributing to every section of the publication and specialising in macroeconomics and stockmarkets, before going part-time.

His freelance projects have included a 2009 relaunch of The Pharma Letter, where he covered corporate news and political developments in the German pharmaceuticals market for two years, and a multiyear stint as deputy editor of the Barclays account at Redwood, a marketing agency.

Andrew has been editing MoneyWeek since 2018, and continues to specialise in investment and news in German-speaking countries owing to his fluent command of the language.