How the fed hike spikes the world

UPSC Practice recommends How the fed hike spikes the world.

Such rapid rises in US interest rates will have a domino effect on the rest of the world, pushing up credit costs for governments that have committed to big borrowing programmes to pull their economies out of a pandemic-induced slowdown. Global capital will be affected by the higher risk-weighted return in the US.

Courtesy: Opinion-Economic Times

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