Strong US dollar boomerangs on Europe

The Federal Reserve is expected to raise interest rates another three-quarters of a point this week in its effort to bring down inflation, further increasing the strength of a rapidly rising dollar in the process.

That’s increasingly being seen as a problem in Europe, where fears about a recession are growing as currencies lose power to the U.S. dollar.

Rising interest rates make it more expensive to borrow money and effectively make the U.S. dollar more valuable compared to other currencies.