US Fed meet and its effects on emerging markets: Current Affairs Special Series_00.1
Latest Banking jobs   »   US Fed meet and its effects...

US Fed meet and its effects on emerging markets: Current Affairs Special Series

Team Adda247 and BankersAdda are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is India is US Fed meet and its effects on emerging markets

US Fed meet and its effects on emerging markets

After the meeting of the US Federal Reserve (Fed) selling-off in equities after the Fed moved up its timeline for interest rate hikes, expecting two increases in 2023. US Fed has also raised its inflation forecast by a full percentage point to 3.4%.

A series of red-hot inflationary prints led by a sharp flare-up in prices of industrial and agricultural commodities, acute bottlenecks in supply chains, a surge in aggregate demands due to the opening up of economies especially in the developed world manifested in bubble-like conditions in parts of financial markets. 

The US Federal Reserve has kept the rates unchanged and continued with its monthly $120 billion bond-buying program without explicitly mentioning any timeline about tapering its aggressive bond-buying program unveiled during the depths of the economic downturn brought about by the Covid pandemic.

US market believes that the Fed appears to be increasingly beholden to the economic and fiscal agenda of the US Administration that has proposed to spend $2.3 trillion on the infrastructure development plan and $1.8 trillion of Family plan after being successful in passing a $1.9 trillion Coronavirus relief package to support business and consumers. 

Central Bankers including the Fed fear that any disruptive rise in yields will compromise their respective government’s insatiable appetite to borrow at even lower rates. Various Central Banks and governments had announced multi-trillion-dollar monetary and fiscal stimulus measures for reviving the real economy of their country. 

However, with debt to GDP ratios soaring in many countries this benign neglect at best or dangerous comfort at worst is bound to come back to haunt today’s merrymaking fiscal and monetary profligates.

After the Fed meeting the US dollar got strengthening due to stronger economic growth and earlier than expected increase in rates.

Download SBI Clerk Prelims 2021 Memory Based Mock PDF

×

Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.

Thank You, Your details have been submitted we will get back to you.

Was this page helpful?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Login

OR

Forgot Password?

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Sign Up

OR
Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Forgot Password

Enter the email address associated with your account, and we'll email you an OTP to verify it's you.


Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to
/6


Did not recive OTP?

Resend in 60s

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Change Password



Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Almost there

Please enter your phone no. to proceed
+91

Join India's largest learning destination

What You Will get ?

  • Job Alerts
  • Daily Quizzes
  • Subject-Wise Quizzes
  • Current Affairs
  • Previous year question papers
  • Doubt Solving session

Enter OTP

Please enter the OTP sent to Edit Number


Did not recive OTP?

Resend 60

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?

By skipping this step you will not recieve any free content avalaible on adda247, also you will miss onto notification and job alerts

Are you sure you want to skip this step?