So yes, the interest rate in the USA went up again yesterday (Thursday). And this time at a rate of 0.75%. And for those who don’t follow the economic websites around the clock – it is likely that they have lost a little direction, and maybe also a little interest. It is quite clear that such a sharp increase in interest rates by the largest economy in the world, especially when it happens twice in a row, is significant. But what is less clear is the connection to us, to the Israeli economy. And how, if at all, the interest rate increase in Washington affects our day-to-day lives.
Of course, the answer to this question is complex and beyond the fact that we are actually in one global economy, there are quite a few areas of our lives that are directly and quickly affected by the increase in interest rates in the US. Moreover, sometimes, just like what happened yesterday at the press conference of the American central bank after the interest rate announcement – One sentence by the Chairman of the Fed J. Powell can outline the Israeli economic moderation in the coming period.
And that’s what we talked about today in episode number 206 of Calcalist’s Money Engines podcast with Psagot economist and chief strategist Uri Greenfeld. Beyond the interest rate decision, we also talked about the report season on Wall Street, whether the largest companies in the world met expectations, what it actually means to meet expectations and why the importance of the companies’ own forecasts is more important today than ever.
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