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Is President Trump Making The Right Changes For The Economy?

This, of course, comes with several incredible implications, and with Trump making one of his first big moves already, the implications will likely come

Project MUSE - Benjamin Franklin s Autobiography and the Credibility of Personality

Project MUSE - Benjamin Franklin s Autobiography and the Credibility of Personality
jhu.edu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jhu.edu Daily Mail and Mail on Sunday newspapers.

Quantitative Tightening and Capital Flows to Emerging Markets

In its May 15th meeting, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve (Fed) lifted its benchmark policy rate by 0.75% to 1.50%–1.75%, the most significant increase since 1994. The central bank also signaled an additional increase of 0.75% ahead. FOMC members also raised the median projection for the Fed funds rate to a range between 3.25% and 3.50% next year. In addition to hikes in basic interest rates, liquidity conditions in the US economy will also be affected by the shrinking of the Fed s balance sheet starting this month. The "quantitative easing" (QE) that resumed vigorously in March 2020, in response to the financial shock at the beginning of the pandemic, will now give way to a "quantitative tightening". How complementary - or substitute - will be those movements in interest rates and balance sheet downsizing? What are their likely consequences on capital flows to emerging markets?

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