As America recovers from COVID-19 It is soสล็อตxostrong that it faces high inflation in 40 years, thus reducing liquidity in the system along with raising interest rates. Which is quite certain that it will start in March of this year.
The issue of the Federal Reserve (Fed) announced to adopt a tighter monetary policy while raising interest rates. It shocked investors and markets around the world quite a lot. Because it is not clear how much will increase per time. including the number of times how often What the market is afraid of is going up faster and harder than expected. Some analysts estimate it could go up to five times this year, from three.
The Fed's move has been warned by the International Monetary Fund (IMF) that it is wary of halting recovery in some already weak economies. Because the US interest rate hike will have a rather large impact on countries with high US dollar debt. especially in low-income countries which will increase the burden of debt repayment
It wasn't just the IMF that voiced it, even Chinese President Xi Jinping. It also launched itself, asking Western countries not to step on the brakes on the economy by raising interest rates too quickly. because it will hinder the recovery of the global economy. and global financial stability with developing countries being the most affected.
while on the other side of China As you know, the monetary easing policy was started by cutting the policy interest rate. Reduce bank reserves and inject liquidity into the system which will continue this year to stimulate the economy to reach the goal of 5% after facing many obstacles including the new Covid-19 outbreak, the huge debt crisis of the real estate sector, etc.
Is the opposite of such monetary and fiscal policy a concern for the two giants? The answer is “not always”, but it could have a positive effect in the sense that it helps balance the global economy or even salvage the economy. even the world
Analysts and economists point out that The direction of the Federal Reserve Bank and China creates a risk to international capital flows. The strong yuan and unprecedented foreign capital inflows into China It will be tested if the Fed's rate hike strengthens the US dollar. The impact will depend on how quickly the Fed pursues tightening monetary policy. And on the other hand, how much is China's easing policy?
The stimulus from China will also help the negative impact of the Fed's rate hike on the global economy. It is estimated that from now until 2026, the Chinese economy will play a role in helping to increase global GDP by more than 25%, more than the United States, which plays about 19%.
