Experts warn the Federal Reserve to raise interest rates or will bring greater economic damage

The Fed has raised interest rates 5 times this year and raised interest rates at 75 basis points at three consecutive meetings. Some analysts have pointed out that the Federal Reserve's policy errors have led to inadequate inflation, and continuous rate hike now will bring continuous impact on the US economy, stock markets and real estate, and consumers.

Analysts pointed out that the Federal Reserve officials, including Powell, expressed their statements many times, indicating that the Fed will control inflation at the cost of sacrificing economic growth and warn the economic pain that the continuous rate hikes may bring. The stock and real estate market decline, as well as the rise in borrowing costs of consumers.

Vorno Agavar, a professor at the Stroom School of Business at the University of Ord Dominin: With the rise of the federal fund interest rate, the minimum interest rate of bank loans will also rise, which means that consumers holding credit card debt borrowed loans Cost rises.

At present, the pain brought by the Fed's continued radical interest rate hike is emerging. The University of California, Los Angeles, issued a prediction report on the 21st, saying that the US economic growth rate will decline significantly in the next 12 months, and the level of inflation will also be maintained at a high level. Analysts of Goldman Sachs Group predict that as interest rates continue to rise, the US stock market may fall more. If the US economy falls into decline, the stock market may fall further by about 10 %. At the same time, the US mortgage interest rate has exceeded 6%last week, and the overall real estate market is facing difficulties. In addition, the unemployment rate of US unemployment rates next year will also rise.

There are also US media that the United States has increased sharply on the risk of global economic recession. Today, the global industrial chain is closely intertwined, and the world's risks will definitely fight against the United States itself.

"American News Today" pointed out on the 21st article that the high inflation of the United States has not led to a decline in consumption capacity, the inverse wealth effect brought by the decline in asset prices, inverted income curves, and the decline of European economy, which may become a crushing US economy. The last straw.

According to the American "Dialogue" magazine website, the Federal Reserve's sharp interest rate hike caused other countries to be forced to face the pressure of inflation and the depreciation pressure of the currency, which in turn increased the risk of global economic recession, and the risks faced by other countries will also fight against the United States itself. Essence

Source: CCTV News Client Guangzhou Daily · Xinhuacheng Editor: Lin Weilin

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