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the u. s. federal reserve is raising interest rates and it's the 1st time since 2018. but is this the sign of a return to non malady or new inflationary era will speak to a u. s. financial correspondent, also coming up the price of oil things father, but prices at the pumps are still sky. hi. we'll find out why from an excellent and china's tech hub, jen. jen is the latest chinese city put on the heart locked down after a wave of cobra. 19 infections. it's sending a ripple through global markets. i'm daniel winter and this is d. w. a business.

thanks for joining us in a much anticipated move, the u. s. federal reserve raised interest rates by 25 basis points on wednesday. as united seat states seeks to fight off rapidly rising inflation, the move lift the target rate to between point $25.00 and half a percent. the u. s. central bank had kept borrowing costs near 0 to help the economy recover from the pandemic. fed chairman jerome powell also says, further rate hikes on likely in the near future. and james sweeney joins us from new york as always, james 1st rate hikes in 2018. what does this say about the state of the u. s. economy? well, to no surprise that the price is for many months the fed height, its interest rates $25.00 basis points. the 1st increase in 2018. and if you're asking, what does this mean about the state of the economy? well, it looks like the fed, it's finally taking those 1st steps needed to curb the highest inflation reed since the 1980s look, inflation is not going anywhere anytime soon. in fact,

the central banks projections today also said that they expect inflation to remain elevated thing that we should end this year at 4.3 percent. and that's way more than the feds 2 percent annual target. and inflation is so high already. and one rate hike is a good start, a good much needed start. but if you want to know what this particular read high can possibly several more means for the us economy for the remainder of this year. well, the fence projections already kind of gave us that answer what powell says to expect for the right hike. so does the fed up to watch out for tightening to quickly after all that has happened in the past? well, inflation has risen so much so fast that again, one rate hike is not enough to show a drastic change. now the question at hand is, it's an interesting one. can the fed raise rates too fast? and the answer is yes, and the phone has to be careful. the american consumer has had a row since the beginning of the pandemic, and one read high might increase their interest payments a little, but only a few dollars, but calling for a possible 6 rate hikes in the next 9 month. well,

those dollars will add up, and the last thing cash strapped americans want to see is higher bills. and for those that are credit wrapped well, it could be even worse if a rate hike is not executed properly, as consumers and businesses are going to find that even harder to borrow cash at low cost and all forms of borrowing from car loans, credit card interest payments, mortgages, they're all poised to get more expensive. so the fed those rate, high redoes rate hikes, a high rates too fast, then there's a good chance you can see even more angry or american struggling to stretch out their dollars. and so it looks like it's going to be tough times ahead for even the average consumer. thank you very much. james sweeney in new york. there for us to be the pleasure. thank you. oil prices are falling farther still after peking recently due to the crisis in ukraine. the problem is actual prices here in europe, a still sky high. let's start with the price of brent crude, a key oil benchmark between the 1st of february and the 16th of march. the price slept 10 percent. that's ignoring the brief jump close to a $140.00 last week,

which quickly on wound. so 10 percent for oil. what about for petrol? in the same time period here in germany, petro jumped nearly 27 percent natural rocketed when the oil price went up. now, the oil prices folding, the discount seems to be taking its sweet time getting through to petro customers. and joining us now as a thomas or daniel, here is an energy expert and lecture at hoti school of governance. tom, thank you very much for joining us. why the discrepancy in oil and petrol prices in europe? is it merely a delay from pipe to palm paw patrol companies taking profit? well, thanks for having me tonight. um ah, so, so it's a little bit complicated, but you're essentially right. the price is only in the less, some days started to fall for crude oil and that was rather unexpected. that's because of the rise of corona in china. ah. so demand is being hit worldwide, and that brings crude oil prices down and there will be

a lag before you see that at the palm. also, there's a problem that russia provides about 2 and a half 1000000 barrels a day normally. oh, be fine diesel in north northern europe. and i ahead of time before the war started in anticipation traders were already rejecting ah, contracts for russian diesel and looking to the middle east and other refiners knowing what might be coming. so there's a certain on what loudy arabia to argue for them to pump more oil. but how likely is that considering that, of course, oil producing nations profit when prices are high? yes, of course. um, well, you know, it's also not in the saudis interest to let the prices go too high because somebody else will take the market and things get out of hand and they have problems. so i will say that the u. e also refused together with the search saudi arabia to talk to mr. biden on this topic. but the u. a has since changed his mind and they will

pump. i don't think there's much doubt that when it is needed and the saudis will pump more, as long as they're, they don't see that pumping more will. arden will depress prices. that's what they worry about. they start pumping and the prices go low. so i think they will come along, they're making a political point, as well as being cautious when you briefly touched on china as a possible reason for the fact of the oil twice has gone back below a 100 dollars a barrel. despite the ongoing, warring ukraine, which fuel to price spike recently is that the only reason is this, such an important consumer of oil and in the petroleum that that's the key player we should be looking out for here as we look to the future and see where prices are going yes, they're very important. and let me just say, here's what i think is going to develop. i'm here in germany minister, how back seems to be extremely nervous. that we can't cut that the european union

and germany in particular can't cut off right now. the delivery of russian oil at which would be a great help to ukrainian people. in fact, i disagree with them. i think he's getting bad advice or panicking. and in reality, if the oil was shut off here, a russian oil was rejected together with the americans have already done this. yes, you get a spike in the price, but it's a world market. oil is fungible. mister putin is in very bad situation. his oil, he wouldn't be able to sell about 2 and a half or 3000000 barrels a day to your that he had been selling. but he would look desperately for another market. he's lost a central bank reserves. he's got to go around and give whatever discounts people want. he's got to sell oil to get money. so you mentioned china, he immediately will go to china and sell it at a nice discount. the chinese will, you know, will like this. but then oil will be on the market. in fact, there is

a deal announced just to date between russia and india, the exact same deal that india will take discounted russian oil. so we could in fact, embargo the oil here in europe together with the americans do the right thing right now. there be a temporary spike. but as more american oil came on market, as the saudis came on line is the u. e came with more oil on line and the strategic petroleum reserve is a 1000000 and a half barrels. the developed countries have there can be brought on line 4000000 barrels a day, said. as russian oil went out, it wouldn't be completely cut off. he'd be making a lot less money and we would accomplish what we want to accomplish to help the agreement. all right, thomas or donald, thank you very much for insights there. that was very interesting. hearing from other groups, any turn in staying with oil, the international energy agency has cut its world oil demand forecast 420222 just

under a 100000000 barrels a day. it fears a global supply shock due to sanctions levied against russia. the world biggest oils exporter, although the energy sector is excluded from those sanctions. major oil companies are stop doing business with the country. while the i e. a, it says it expects oil demand to increase and production to fall. it warns its forecast could change due to the war. but let's take a quick check on the other business stories making news today. b m w is want investors that conflict and ukraine could negatively affect its business for the current year. the company expects lower profit margins due to production and supply disruptions. the global chip shortage will still play a role as the german comic a dozen c supply control constraints easing until the 2nd half of 2020 to italy is accelerating its investments in renewables to free itself from russian gas. by 2025 . the government has approved 60 wind farms on land joining the mediterranean 1st

ever. offshore wind farm near toronto. once completed, the new offshore wind farm will power around $21000.00 homes. alibaba our intense center preparing to cut tens of thousands of jobs combined this year. coming just over year after chinese regulators launched an unprecedented campaign to rein in its internet giants cutting into their business valuations and sales staying and china, the past 2 years have been a headache for technology supply chains. much of them linked to china between a pandemic and a war type businesses are struggling. but new cove it but now cove 19 cases in china are surging. once again, the country has a strict 0 covert policy. that's leading to factory closures disrupting a key technology and manufacturing an export city. sion gen barbed wire. separates neighborhoods, enchant chin a desperate attempt to keep a new wave of corona, virus infections in check. china reported 5280 new cases on tuesday. more than

doubled the previous days tally now entire cities and are locked down with no weight in or out. as some travellers found out. oh hello sir. i thought how much i was going to go back by long distance bus, but now i can only take a train. i had to wait 48 hours for a negative test result before i could leaf. so this does affect me though the will have the engine and what, what does he can't i, i think the outbreak is here is worse than the 1st year. but we, shanghai people aren't really panicking. many of us have food supply, stored at home, just in case the neighborhood a workplace suddenly locks down before they die to visual tap. but it's not only grocery stores that are closing with millions of chinese affected in the countries tech and financial hub. some major companies had to hold production among them, apple suppliers fox con and uni micron. the economic impact for the country could

be immense. analysts say that china's goal of a 5.5 percent g d, p growth is unrealistic. and you're up to date with d. w. business. i'm daniel winter in berlin for me and the business team, thanks very much for watching to the point. strong opinions, clear positions, international perspectives. russian forces are intensifying their attack on you with each side accusing the other of shocking crimes. the world, meanwhile, looks on. it's a war weapons, a war of words find helpful on to the point shortly. to the point on d w. putin's war ukraine is also shaking up the world economy

. the heavy sanctions are not only putting russia under pressure. europe wants to free itself from its energy dependency. china fees to see the market. and in the forest countries, new families are in a business, especially in 60 minutes on d w. oh, i think everything jenny fair, some are big a muslim. so much different culture between here and there. so jelly, do you quote empathy? ah, and to some of this, i think it was worth it for me to come to germany. shove my got my license to work as a swimming instructor and asia. now i teach children and adults just with

what's your story? take part, share it on info, migrants dot net. ah, ah no let up at all in the fighting in ukraine and the propaganda war is also intensifying. the clinic comes under attack. who's to blame? residential areas flattened, the same question. who is to blame? the whole city cuts off again who's to blame. it's a buckle of words between a man whose country clearly stands behind him, and it holds a crash with a long record of pulverizing opposition. on to the point, we are so lensky against putin, whose truth is stronger.