Federal Reserve rate rise would cause panic and turmoil, warns World Bank
http://www.hangthebankers.com/
The Federal Reserve will cause “panic and turmoil” if it raises interest rates in the next few weeks, the World Bank‘s chief economist has warned.
Kaushik Basu said emerging economies would be hit hardest if the US central bank decided to raise rates from their record low of between 0pc and 0.25pc for the first time in nine years.
“I don’t think the Fed lift-off itself is going to create a major crisis but it will cause some immediate turbulence,” Mr Basu told the Financial Times.
“It is the compounding effect of the last two weeks of bad news with that [China devaluation] . . . In the middle of this it is going to cause some panic and turmoil.
“The world economy is looking so troubled that if the US goes in for a very quick move in the middle of this I feel it is going to affect countries quite badly.”
A weaker than expected increase in jobs last month meant the ralral Reserve’s decision on whether to raise interest rates this month was too close to call, analysts said last week.
Markets now believe there is a 34pc chance the Fed will raise rates this month, up from 30pc just before the data were released.
Jim O’Sullivan, chief US economist at High Frequency Economics, said consensus at the Fed to tighten monetary policy was not far away.
“Allowing for the tendency for August to be underreported initially, the employment data generally look more than strong enough to support the start of Fed tightening at this month’s meeting. Nonetheless, we expect officials will hold off for now due to the risks raised by weakening in global growth and turmoil in markets,” he said.
“We expect they will be tightening very soon.”
Premature Fed rate hikes could threaten the world’s emerging markets, many of which have large amounts of dollar-denominated debts.
When former Fed chairman Ben Bernanke made moves towards ending the Fed’s QE purchases in 2013, the threat of a higher US dollar caused turmoil in foreign exchange and debt markets.
http://www.hangthebankers.com/
Source: http://www.hangthebankers.com/federal-reserve-rate-rise-panic-turmoil-world-bank/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
