Were, as we take on the world, i do all this is were all about the stories that matter to you. Whatever it takes time to leave my phone with you, we are area is actually on fire. Made for mines ah, the Federal Reserve hikes Interest Rates again. Well, another rise in borrowing costs helped bring the highest u. S. Inflation for 40 years under control will get some Expert Opinion and taking matters into her own hands, meet the lebanese bankroll. That fact, the money that she says is rightfully has this is day to be a business on robots in berlin. Welcome to the program. The feds fight against inflation continues. The u. S. Central bank has raised Interest Rates by 3 quarters of one percent. Its 5th rates hike this year, u. S. Borrowing costs are now at the highest since the 2008 Global Financial crisis. The Aggressive Program of rights sites aimed to tame rising prices for everything from food to clothing. The Federal Reserve decision on wednesday comes with us inflation persisting at over 8 percent, is fed chairman jerome pow over coming months. We were looking for compelling evidence that inflation is moving down consistent with inflation returning to 2 percent. We anticipate that ongoing increases in the target range for the federal funds rate will be appropriate. The pace of those increases will continue to depend on the incoming data and the evolving outlook for the economy. With todays action, we have raised Interest Rates by 3 Percentage Points this year. At some point as the stance of Monetary Policy titans further, it will become appropriate to slow the pace of increases. Well, we assess how our cumulative policy adjustments are affecting the economy and inflation. Mo, discussed the reaction of Corporate America to the Federal Reserve decision with that correspondence in new york shortly. But 1st, lets get a better understanding of the feds approach. Im joined by child care in his chief economist at the Keenan Institute of private enterprises, north carolina. Thank you very much for joining us on d to we business. How easy a decision was this for the fact because there is a balancing act to be performed is not its great to be here. So i think all of these decisions are really hard for the fed because as you say, theyre trying to balance fuck fighting inflation and really showing that theyre fighting inflation and being very, very, indicating and being very vigilant. And they know that this is the key problem and the risk of causing a recession by these rate hikes. The challenge is that Monetary Policy is a very blunt instrument. Basically what they have to do is theyre, theyre hammering down on demand in order to slow inflation. And part of the problem is that are met. Much of the problem is that there are supply challenges or, or their significant problem of supply challenges of labor shortages. And the fed cant do that, can affect that by raising rates or even cutting rates, what they really need but, but they need to slow demand and so, and they need so inflation. So they have to go with slowing demand and risky, or recession and jump out appears to have indicated that moral rights rises on the way. I mean, how high can it go . Were going to keep getting these point 75 percent rises. Well, they just, they did a quite an aggressive shift in, in their summary of economic projections. The fed puts had the, the members of the apple, m. C. Put out a summary projections. And they raised their target, their estimated year and target funds rate by one full percentage point, which basically says they anticipate. Another one and a half percentage percent were percentage point rise between now and the end of the year, which means some combination of 75704075 basis points, 3 quarters, a percentage point half a percentage point and our quarter Percentage Points. So it could be 27517515125. We dont know that theres no specificity that but they, they look like theyre going to continue to be quite aggressive. Us already into a technical recession last quarter. Is it going to go deeper into recession . Is not its not just a fact now with the rest of 2020 to briefly if you can. So, so im going to push back a bit on that. That while there were to negative quarters in g d, p, the Employment Data, other Economic Data and even the gross domestic income, which is another measure of economic output, were all positive with Employment Data be very strong. So i dont think, or i strongly feel we were not in recession in the 1st half of the year. And the data that we have suggest that we are not in a recession in the, in the 3rd quarter. And based on the economic fundamentals that we have, i dont think that, that were going to be there in the next quarter in the 4th quarter. The one that were about to begin going into 2023 i think is really where the danger of the fed lurks. And i think if given all the positive fundamentals, if there is a recession and i put it at about 5050 chance, which is still very high probability, that it will be at the end of 2023, and earle or 2024. Okay, joe kind from that came in history of private enterprise. Thank you so much for reactions about this and for us. Thank you. Lets actually turn to our financial correspondent in new york. He ends quarter for even more on this. Yes, yes, businesses had been expecting this rates rise, things fair to say, but what does actually mean for them . I mean jerome pol made it to pretty clear. He said theres no way of wishing away inflation and its never painless, certified inflation. I mean, what the Federal Reserve is doing here or was making money more expensive is sir to actually push the companies to spend less so. So thats a direct effect there. Does serve Interest Rate increases that are having on us businesses and then also the higher the rates in the United States. You also saw this sir, push for the us dollar in comparison to a whole basket of other currency as meaning when youre in usaa exporter. I mean thats going to hurt your profit. Been your bring your money back home from overseas. The behavior is a fair to often set the tone for other Central Banks doesnt have several businesses outside of the state. So. So be taking note of todays decision. Yeah, clearly i mean, you will see that quite often that when something had been sent disconnected at spades and specially walter was the Federal Reserve firm other a central bank so follows you would actually, i believe this week, a load we have about 12 to 13, a Central Banks around the globe who are toying with some increasing and their rates into a certain sense. I mean they, they have to because the wider the gap between rates in the United States and somewhere else and a planet. I mean, that pushes earl or ports a lot of capital into the u. S. A. System and other countries, one, bed capital 2. And then also when we talk about term bit higher rates in the u. S. And 3rd, the effect that that has on the dollar that clearly is also affecting our business. So somewhere else around the globe, maybe one little positive effect that those rate increases. Might have you see that quite off the higher dollar as the more or, or the, the, the bigger the drop in commodity prices. So that actually could be as smart as not positive of what were seeing right now. And the dollar went to its highest rate for 20 years against your i didnt after this. So thank against culture in new york or is now lets take a look at some of the other Global Business stories making the news as well. Apple could be making one of 4. I phones in india by 2025, according to j. P. Morgan, the tech giant is moving some production out of china, mid mounting geopolitical tensions and strict coded locked downs. Apple is expected to move about 5 percent of iphone 14 production from late 2022 to india. Hong kong has lost his position as the global aviation hub due to chinas 0 cove. It policy thats according to the head of the airline st. Iota. The Group Warranty industry, the industry Pandemic Recovery would be slowed if paging kept up, the policy that germanys largest gas in bought a uniform has been nationalized. The German Government announced the measure on wednesday to prevent the Company Going bankrupt. Unit per, has been caught up in the Ongoing Energy crisis after russia stopped almost all natural gas flows to germany and was widely seen as retaliation for sanctions over the war. And ukraine with no cheap russian import. Jennifer has had to buy gas elsewhere, much higher prices. German government. Now how its 98. 5 percent. If you, if a stock though, after buying out finish energy for, for them is unit for c who welcomed berlins decision. Obama, we have always pointed this out. If our company had gone the bank roma, it would certainly have triggered a Chain Reaction and the german gas supply probably all the way to the German Electricity supply or even beyond germany, borders. And in this respect, i think everyone was in agreement that such a Chain Reaction must be prevented. And thats whats happening now with this stabilisation package and stop. Now, lebanons banks are expected to be closed indefinitely following a series of armed robberies. Lebanese savers, frustrated by their countrys economic implosion, have been taking matters into their own hands and all inspired by one woman. This is the moment a woman holds up a bank in beirut, a weapon shes holding is a toy gun. And the 13000. 00 euro she runs out with she believes is rightfully hers. The funds will be used to pay for cancer related treatment for her sister. Until this moment, she hadnt been able to access the money. Watha dont think that senior authority, figures and lebanon do not have interest with the banks. Theyre all in cahoots to steal from us and leave us to go hungry and die slowly. Why . His wife in the country were thousands of people have been locked out of their savings. The 28 year old interior designer is being hailed as a hero for taking hers back since of fees as bold act 7. 00 others of held up banks to access their own money. 3 years ago banks and lebanon, imposed controls at froze, a savings account of ordinary individuals. Over night, they claimed who had help easy economic crisis, but with people unable to access their money, things have gotten worse. Depositors say that bank owners are lending their money to the government in return for high interest payments. The obviously a fee which model what is happening is unacceptable. And the most responsible party is the lebanese state, but is still dealing with this issue in a wrong way. We go to our remote the world bank has called a crisis, a deliberate depression orchestrated by the countries elite. The government says it is working to secure a 3 1000000000 euro bailout from the i m f. Meanwhile, huff fees and her sister will now be able to pay for her sisters treatment. I just thought for mind as the top business story were following for you this hour. The u. S. Federal reserve has raised Interest Rates by 3 quarters of one percent. Its the 5th increased by the central bank this year as it tries to bring the worst inflation in for decades under control. Thats all from me on the Business Team here in berlin, from o to head over to our website, d to we dot com slash business, or of course the d. W. News, youtube channel. And you can find on facebook as well as d, w dot business till next time. 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