Strong dollar good for U.S., bad for world: NYT

By Xia Lin
  • World
  • Friday, 30 Sep 2022

NEW YORK, Sept. 29 (Xinhua) -- The U.S. Federal Reserve's determination to crush inflation at home by raising interest rates is inflicting profound pain in other countries, pushing up prices, ballooning the size of debt payments and increasing the risk of a deep recession, reported The New York Times (NYT) on Monday.

"Those interest rate increases are pumping up the value of the dollar -- the go-to currency for much of the world's trade and transactions -- and causing economic turmoil in both rich and poor nations," said the report.

"For the rest of the world, it's a no-win situation," said Eswar Prasad, an economics professor at Cornell and author of several books on currencies.

At the same time, he said, the Fed has no choice but to act aggressively to control inflation. "Any delay in action could make things potentially even worse," he added.

"Policy decisions made in Washington frequently reverberate widely," said the report, noting that the United States is a superpower with the world's largest economy and hefty reserves of oil and natural gas, and "when it comes to global finance and trade, though, its influence is outsize."

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In World

In Mexico, lack of resources aggravates impunity in gender crimes - group
Peru Congress backs motion to start impeachment against Castillo
Dutch prosecutors won't appeal sole acquittal in MH17 trial
Ukraine orders probe into Russian-linked church, says Zelenskiy
High drama in World Cup as Japan qualify, Germany and Belgium go out
U.S. stocks end mixed ahead of key jobs report
Migrant paraglides over border fence into Spain
Oil prices settle mixed amid weaker U.S. dollar
U.S. agricultural futures fall
Germany crash out of World Cup despite victory over Costa Rica (updated-2)

Others Also Read