![]() ![]() And indeed, such a rapid and significant interest rate reversal does present a challenge. German comedian Karl Valentin might have said: they would have been willing to want to, but didn't dare to be allowed. Perhaps they reckoned that even if the Governing Council wanted to move, it would not be able to. Some who didn't think the ECB Governing Council had it in them to turn the interest rates screw so robustly may well have had the financial system in mind. To be fair, though, I would add at this juncture that, one year ago, no one knew how strong and persistent inflation would turn out to be, either. And financial market data from back then also offer no indication that investors saw any degree of likelihood that this key interest rate level would materialise. We took a look at the relevant expert surveys from last July and found that not one of them predicted that the deposit facility rate would stand at more than 3% in one year's time. And let's be honest here: who could have imagined that one year ago? The last time we in Germany saw rates climb this strongly within a similarly short period of time was in the 1970s. And above all that seven further interest rate steps were to follow within the space of less than a year.Ĥ00 basis points is the total by which key interest rates have gone up since July 2022. ![]() ![]() What may have surprised many, however, was that the chapter on negative interest rates was already over when the first interest rate step took place. It was clearly communicated at the time that this policy rate would be raised a few weeks later, for the first time in 11 years. One year ago, the deposit facility rate, currently the Eurosystem's most important key interest rate, stood at -0.5%. Because it is also a matter of not impeding the task of monetary policy unnecessarily. And yet it is crucial for other actors to be aware of their responsibilities as well. What is more, it was clear to everyone involved that it is the task of independent monetary policy to safeguard price stability. No specific policy decisions were made there, but the meetings did provide impetus in the search for ways to provide citizens with relief from the burden of high inflation. These meetings were mainly concerned with comparing notes on the causes of inflation and the outlook. Academic experts participated, too – and I represented the Bundesbank. On the initiative of the Federal Chancellor, this and further meetings saw government, trade unions and employers exchange views on price developments. This was because the event coincided with the first meeting of "Concerted Action" group in Berlin. Drawing upon his extensive knowledge and research, Shroyer highlighted the key players involved, their connections, and the suspicious circumstances surrounding these overseas payments.At the last Frankfurt Euro Finance Summit a year ago, I was unfortunately only able to speak to you via video. Throughout the episode, Shroyer dissected the details of the House Oversight Committee's report, discussing the potential ramifications and implications for President Biden and his administration. As the story unfolded, it became apparent that the alleged payments could reach a staggering 50 million dollars, raising serious questions about potential corruption at the highest levels of government. Shroyer started the show with a strong introduction, emphasizing the gravity of the latest revelations from the House Oversight Committee. Titled "This Was Organized Crime," the show delved deep into the findings that could potentially implicate the Biden administration in a web of financial irregularities. In a gripping episode of the 'War Room' show hosted by Owen Shroyer, today's headlines were dominated by startling revelations from the House Oversight Committee concerning President Joe Biden and potential overseas payments. This Was Organized Crime’ Biden Overseas Payments Could Reach Up To 50 Million Dollars In Latest Revelations From House Oversight ![]()
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