Economy"Economic earthquake". China condemns US reckless decision

“Economic earthquake”. China condemns US reckless decision

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Capitol building in Washington DC. Archive photo

GT: US Federal Reserve rate hike will cause global economic earthquake

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MOSCOW, September 26 – RIA Novosti. In the Chinese edition, columnist Sheng Wen wrote that the US Federal Reserve has decided to raise the key rate once again in order to curb inflation in the country, which will have an extremely negative impact on the global economy in the near future. Global Times.

The author noted that such radical steps by the US authorities are reckless and could trigger a global “economic earthquake” very soon, especially if Washington does not intend to stop the current rate hike.

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“Due to the Fed’s aggressive rate hike, other countries will have to increase them to prevent a backflow of dollar assets into the United States, which will likely cause a global recession,” the journalist said.

According to Sheng Wen, such irresponsible Washington’s intentions could eventually lead to a powerful financial storm or even a complete collapse of the global economic system.

“The Fed doesn’t seem to think about other economies and exchange rates at all, including many US allies,” the Observer said.
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Earlier, the US Federal Reserve raised the base interest rate by 75 basis points to 3-3.25 percent annually, following the results of its September meeting. Since May this year, the regulator has increased the rate three times to contain rising inflation.

The United States and European states have faced record inflation for decades. The imposition of sanctions against Moscow and the policy of abandoning Russian fuel caused an increase in fuel prices, especially gas. As a result, industry in the West has largely lost its competitive advantages affecting other sectors of the economy.

Source: Ria

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Regina
Regina
With a passion for storytelling and reporting, I am an experienced writer and Editor with a focus on sports. As an Author at News Unrolled, I write engaging stories on the latest developments in the world of sports. My articles have been featured on numerous global media outlets and my work has been highly praised by renowned editors.

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