The Repercussions Of Raising US Interest Rates What is happening now in the US economy and the potential implications for the world is not new. The eagerly awaited by economists and financial analysts from a possible rise in US interest rates in the near is not linked to developments and data on output only and labor markets, but rather an attempt to restore fiscal policy the US to its natural course may be after a long period of quantitative easing and low interest rates until it became in the zero level.
Anticipation period raised fears the global markets, which is called «Taper Tantrum», as the move to raise interest rates will lead to a kind of confusion in the global financial markets have reflected negatively than positively in emerging markets.
This mortgage as she said finally Janet Yellen, President of US Federal, shortly after meetings of the International Monetary Fund in Washington to try to avoid what happened in May 2013 when her predecessor Ben Bernanke pointed to the willingness of the federal to begin the Channel Ranger Review process of easing quantitative easing, prompting investors to flee risk in the markets emerging and reflected negatively on the currency, in particular the Indian rupee and Turkish lira, which were lower to record levels.
Therefore, according to a lot of finance ministers, the unrelenting what was said behind closed doors and reassuring US interest rates if it rose, it would be a way «transparent and understandable».
Despite assurances that took place in Washington Finally, the economists forecast does not suggest any rise in interest rates before September of this year, and concern remains great of a Cash Camp Software repeat of what happened in the mid-nineties when narrowed the monetary policy and the US dollar, which helped in the bombing of the financial crisis that swept Thailand economies South Korea, Russia and Brazil.
Referring to the current security gaps International Monetary Fund has pointed out that the debt has exceeded the GDP in all emerging markets since 2007 as well as the indebtedness of the companies on this calculated in US dollars economies have tripled during the past five years until it reached record levels estimated estimated at $1.4 trillion.
Therefore, countries may be the most vulnerable are those that did not seek to improve the structural economies that have sought to work to improve this structure may be exempt from the consequences of so – by what he said Stanley Fischer, vice chairman of the Federal Reserve Board.
For example, not limited it seems that South Korea and India have become the status much better than it was in the year 2013 as well as it seems that Indonesia is much improved and so for a number of Asian countries that sought to reduce external borrowing and reduce the deficit in the account – Therefore, you may be out of Cash Camp Binary Options process and low interest rates is more complicated than entering it.
Therefore, we believe that things are moving towards the US and the possibility of the Fed raising interest in June and its consequences on the countries of the world, particularly emerging countries, which constitute about 40% of the global economy and how its response to so high. Assurances may be tempered inadequate. However, and as we mentioned earlier, several countries could not improve during the previous period is what makes economies raise US interest rates by the new financial setback and the risk of fluctuations in their currencies which means undermining the global economy.
In absolute terms, the United States and through financial policies has shown that what is going on around secondary compared to what is happening in the American home, where Channel Ranger System indicators and figures the rest of the domestic product and the rate of unemployment and the labor market’s biggest motivations for any possible change in fiscal and monetary policy remains assurances unrelenting states G20 assurances of principle and not enough and more referring to the lack of US Federal’s ability to deal with the global economic downturn expected and more means that the Board of the Federal Reserve aims to avoid a surprise lead to financial spasm in the markets World-and if the makers of monetary policy expected normalization gradually to interest rates seems, according to chief economist Star Wars Binary Bot in Deutsche Bank AG I do not know how it will be and the experience was so with the Federal Reserve’s policy in the past two decades, the best proof of that.
The question that arises now is how Europe and Japan will deal with these high interest rates, in particular that they are in the midst of the quantitative easing process that require the benefits of very close Elsafr- and how it will interact economies with this process, especially as the first in a decade also depends on the timing and magnitude of the possibility of tightening policy and the reality of the preliminary results will be inevitable on the European and Japanese bond yields and converting investors’ money to the US bond markets, which means that long-term interest rates may remain low in the foreseeable future and historical standards. This is already what to expect economists now have the expected results will not be a large gold prices or worthwhile.
So it is no longer as many believe the process of raising US interest rates a bet but became real for economists and financial analysts is that the biggest bet remains in the timing and size is, and many do not differ on the timing but the scale of the 7 Figure Challenge operation remains the most important fact that it will reflect not only on the US economy in terms of higher borrowing costs and mortgage rates and reflected an increase in the price of the dollar compared with other currencies, but will skip to reflect on Europe, Japan and emerging markets that may indicate a slowdown in the global economy.
This is the current image and the words remain unrelenting in particular her famous «Patience», which has been the only thing certain frequency and also has been repeating that the G20 finance ministers after their meeting them. So what you’re saying unrelenting and determined by the US Federal is the most important event in the world’s economies today.