The Macroeconomic Effect Of The Federal Reserve Interest Rate Hike On The US Economy
The United States economy has been a subject which is debated every now and then, in which it’s been said that the horizon is not that favorable. It’s been said that the US economy in coming weeks is going to face two at least extraordinary macroeconomy factors. This head winds are said to be exceptional which will produce different outcomes, when these factors will hit there is no time frame which said to be attached.
In an exclusive interview with one of the executives from the banking giant JP Morgan of whom broke this down highlighting these concerns as par to the US economy. The Bloomberg interview which Dimon says that - So one is the fiscal money being spent is so big, the largest in peacetime ever in America and kind of around the world with already very high deficits and QT (quantitative tightening) we’ve never had. I know some people think QT will be uneventful. I’m not so sure. At a minimum, I expect volatile markets.
And then all the long-term fiscal things are kind of inflationary. Oil prices, certain commodity prices, the green economy, the restructuring of the trade – you name it – I see is adding to inflation, not subtracting inflation. So I don’t think inflation will keep on going down. It may not so therefore, rates may go higher.
But the biggest storm cloud is geopolitical. It’s Ukraine, the humanitarian crisis. It’s a war not far from here. It’s a long 600 miles, and 500,000 people were killed. It’s nuclear blackmail. It’s going to affect all global relationships in America and China – trade alliances. We don’t know how it’s going to start either. So I just put those two things. I keep a close eye on. And then how it affects the economy is different, the prerecording can be viewed through the YouTube link.
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