American newspaper: High inflation creates poor economic prospects for the world

Politicians around the world fear a growing risk that the global economic slowdown will turn into a more severe recession due to strong inflation, rising energy prices and rising interest rates.

informed Wall Street Magazine MagazineAmerican A poor US inflation report last week is likely to force the Federal Reserve to raise interest rates quickly, according to MENA.

She added that this could help boost the US dollar, which would raise the cost of imports and debt servicing for many countries.

Major energy producers are cutting supply, increasing price pressure and slowing down economic activity, especially in Europe.

New data from China also showed that consumer spending has fallen sharply, another sign of slowing economic growth.

Many politicians at the meetings see high US inflation and the Fed’s reaction as a serious threat to their economic outlook.

The American newspaper reported that the rapid increase in the federal interest rate this year has helped attract investors to US markets and boosted the value of the dollar, noting that the strength of the dollar is increasing the cost of dollar-denominated imports and debt servicing for many other countries.

It is also putting pressure on other central banks to raise their interest rates to protect their currencies, which could further slow growth.

The newspaper pointed out that there is no official definition of a global recession, but many economists say one of the key elements is economic growth falling below population growth, or about 1.1%, while the World Bank expects global growth to be 1.9%. next year.

Source: The Wall Street Journal, USA