From 1980 to 1981, the Federal Reserve raised the interest rate to 20%. In 1982, the Latin American debt crisis broke out, and South America never recovered. There was a two-year gap between the interest rate hike and the crisis. From 1988 to 1989, during the period of Japan's asset price bubble, the Federal Reserve raised interest rates precisely, forcing Japan to raise interest rates and bursting the Japanese asset price bubble. In 1990, the Japanese bubble crisis broke out, and there was a two-year gap between the interest rate hike and the crisis. From 1994 to 1995, the Fed raised interest rates from 3% to 6%. In 1995, the Fed entered a cycle of interest rate hikes, and then the Asian financial crisis broke out in 1997. There was a three-year gap between the interest rate hike and the crisis.
From 1998 to 2000, the Fed raised interest rates from 4.75% to 6%, and then the 2000 Internet bubble crisis broke out, with a two-year gap. From 2004 to 2006, the Fed raised interest rates from 1% to 5.25%. In 2007, it entered a cycle of interest rate cuts, and then the subprime mortgage crisis broke out in 2008. There was a four-year gap between the interest rate hike and the crisis.
From 2015 to 2018, the Fed raised interest rates from 0.25% to 2.5%, and then the global financial market fell in 2018. In 2019, a cash shortage crisis occurred in the United States, forcing the Fed to urgently expand its balance sheet by $500 billion.
The epidemic broke out in 2020, and the Federal Reserve printed money unlimitedly, resulting in out-of-control inflation in the United States two years later. In 2022, the Federal Reserve began to raise interest rates aggressively, raising the interest rate from 0.25% to the current 5.5%. *1/10/24*