It is now considered certain that the directors of the US Federal Reserve will take the next step towards tighter monetary policy at their next meeting in March.

However, there is disagreement among investors and analysts about how big this step will be - and how far the Fed will ultimately go.

Gregory Bruner

Editor in Business.

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Since Thursday afternoon, this discussion has gained new impetus when the inflation rate for January was announced: The prices that Americans spend on goods and services that they consume every day have risen by 7.5 percent on average.

7.2 to 7.3 percent were expected, which would also have been an extraordinarily high value.

And don't forget: In December, the inflation rate was already 7 percent.

A month ago, observers were still expecting the central bank in Washington to act in a specific but cautious manner over the course of the year.

The prevailing opinion assumed three to four rate hikes this year.

Now the American investment bank Goldman Sachs is extending these estimates: Up to seven steps should be taken this year to combat persistent inflation.

Analysts and investors agree

In a note to customers of the bank, economists at the bank predicted seven rate hikes of 25 basis points each this year.

Investors agree with this assessment.

Interest rate swaps tied to the timing of Fed meetings show marketers see US interest rates at 1.85 percent after the Fed's FOMC meeting in December this year, financial service Bloomberg reports.

In line with this, the president of the regional Federal Reserve Bank in St. Louis, James Bullard, wants to raise the key interest rate in America to 1 percent by July 1st.

At the moment, the central bank is showing its target for key interest rates of between 0 and 0.25 percent.

Between Bullard's statement and July 1, the Open Market Committee is expected to meet three more times to decide on interest rate moves.

If Bullard envisages the target range for interest rates to be above 1 percent overall, that would imply at least a 50 basis point hike at one committee meeting and 25 basis point hikes at two other meetings.

Most recently, there was a 50 basis point move in 2000.

Stock markets in excitement

On Thursday, the high inflation already caused a bad mood on the stock markets.

The assessments of Goldman Sachs and Bullard's statements caused additional trouble on the stock markets on Friday.

After the stock exchanges in Shanghai and Shenzhen lost 0.7 and 0.8 percent respectively, the Dax continued its downward movement from the previous day.

He lost up to 1 percent in the morning.

The broader Euro Stoxx 50 even fell by up to 1.4 percent.

Lower levels are also expected from the American stock exchanges.

On Thursday, the stock indices Dow Jones, Nasdaq and S&P 500 lost between 1.4 and 2.1 percent.

Forward transactions on the indices pointed to lower opening prices on Friday.

Technology stocks in particular are under pressure given interest rate concerns.

The index of the Nasdaq technology exchange is expected to open with losses of 0.7 percent.

The euro slipped back below the $1.1400 mark on Friday night and was at $1.1386.

Yields on the key US 10-year Treasury bond smashed through 2 percent on Thursday in response to the news and stayed above it on Friday.