"We can expect steady increases in interest rates and the reserve requirements".
Strong increases in interest rates would be accompanied by massive bankruptcies and economic turmoil.
The US Federal Reserve will delay further increases in interest rates.
However, the effects of recent increases in interest rates in Britain have yet to be seen.
Hence the five quarter-point increases in interest rates, to 7.25%, between May and November 1997.
Mr. Volcker, who led the Fed until 1987, often used tactics that were unpopular, like rapid increases in interest rates.
Mr. Mead said the prospect of further increases in interest rates had not caused him to change his investment strategy.
Modest increases in interest rates, petrol prices and the like – let alone unemployment or a relationship breakdown – can be disastrous.
Such downturns almost always followed increases in interest rates imposed by the Federal Reserve to dampen inflation.
Investors in collateralized mortgage obligations, or C.M.O.'s, were badly burned by increases in interest rates in 1994.
Recent increases in interest rates, plus those that are expected, will rein the market in a bit.
