The U.S. Federal Reserve is exploring raising interest rates if inflation continues to rise.
More details🧐 Meeting minutes emerged from the Fed’s meeting earlier this month when it decided to begin tapering. The meeting minutes indicate a lively discussion on inflation, with members stressing the willingness to act if inflation continues to increase.
Why is this important🤔 With higher interest rates in the U.S., countries that have debt in dollars will be hit.
An analysis released last week by Japanese investment bank Nomura found that the four emerging markets most at risk of an exchange rate crisis are Egypt, Romania, Turkey & Sri Lanka.
The analysis considered indicators such as external debt as a percentage of GDP, the ratio of foreign exchange reserves to imports, & stock market index.
