Economics
May 1994 - What Happened When the Fed Last Diverged With Europe
- Fed may increase key rate in December as ECB adds stimulus
- Citigroup, Credit Suisse see dollar rising as policies split
ECB, Fed, Are They Heading in Opposite Directions?
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It’s been more than 21 years since the Federal Reserve last raised interest rates the same month as its main counterpart in Europe eased monetary policy.
May 1994 was the month. Nelson Mandela was being sworn in as South Africa’s first black president and the tunnel linking the U.K. and France was opening for the first time. Beverly Hills Cop 3 was released in cinemas and the Crash Test Dummies were singing “Mmm Mmm Mmm.”