GLOBALink | Economists say U.S. interest rate hikes to cloud outlook for emerging markets

WASHINGTON, July 27 (Xinhua) — The U.S. Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points, the second in a row of that magnitude, as elevated inflation showed no clear sign of easing.

The Federal Open Market Committee, the Fed’s policy-making body, decided to raise the target range for the federal funds rate to 2.25 to 2.5 percent and “anticipates that ongoing increases in the target range will be appropriate.”

However, many economists around the world have voiced the concern that the U.S. interest rate hikes will cloud the outlook for emerging markets and will put countries with U.S. dollar-denominated debt in trouble.

The U.S. interest rate hikes will cloud the outlook for emerging markets and will put countries with U.S. dollar-denominated debt in trouble, many economists have said.

Produced by Xinhua Global Service