Federal Reserve System – Page 72

Global Fallout From Rate Moves Won’t Stop the Fed

The Federal Reserve, like many central banks, sets policy with an eye on the domestic economy. Its battle to control prices is causing pain abroad.

Central bankers have been raising rates rapidly to temper demand and bring prices under control. Now, they’re asking when they can slow down.

The Federal Reserve has run up against a stubborn obstacle in efforts to lower prices: companies reluctant to give up fat profits.

Low-income countries, like Ghana and Pakistan, were already struggling during the pandemic. The dollar’s strength is adding to their woes.

The Bank of England stepped in to save a critical market this week. Economists say it was necessary but also worry about the precedent.