Economists almost all agree that the U.S. Federal Reserve will raise interest rates this year. But while experts have a lot to say about higher rates’ effect on the United States, there’s been a lot less talk about what they will mean for the world’s No. 2 economy.
Many newly industrialized countries—such as Brazil and Mexico—will likely suffer from a Federal Reserve rate hike, but for a variety of reasons, China is suited to ride out a tightened dollar supply with relative ease, according to economists.
New York Fed President William Dudley said in a Monday address that the hike could have “disruptive” global implications, and investors are keenly watching China, which has been a key driver of international growth. But experts told CNBC that the country will not feel any significant negative impact from a U.S. rate hike.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015