What are the risks of raising interest rates?

But the trick is judging how far to go In 1981, the Federal Reserve, America’s central bank... ...allowed interest rates to rise to a whopping 19% The move curbed inflation, but it led to widespread economic pain I regret to say that we’re in the worst economic mess since the Great Depression It is very difficult to get inflation under control... ...without severely denting economic activity In America, it’s been over 70 years since they’ve managed to get inflation down... ...from over 5% without causing a recession A little inflation is OK