Washington-Sana
The Wall Street Journal reported that slowing growth and a sharp rise in inflation as well as an interest rate hike in the United States increased pressure on emerging market financing and raised concerns about a full-blown debt crisis in low- and middle-income countries.
The newspaper pointed out in an article that what also increased pressure was the US Federal Reserve's announcement last week to raise interest rates by the largest increase since 1994, a move that risks increasing emerging market debt and inflation problems by weakening their currencies and accelerating capital flight.
The newspaper pointed out that the concern is particularly evident regarding the high bond yields and capital inflows month after month as investors abandon the assets of weak countries.
On the fifteenth of June, the US Central Bank announced the largest interest rate increase in nearly thirty years, at a time when President Jerome Powell is under great pressure with the acceleration of price hikes.
And the American “Bloomberg” website revealed the day before yesterday that with the acceleration of consumer prices in the United States and the rise in inflation rates to a degree that threatens to enter the American economy into a major recession, President Joe Biden finds himself in a serious political impasse that may cost him the midterm elections scheduled for next November and restore control over Republicans in the House and Senate.
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