Central Banks
Fed Hikes Harming Global Markets, Economy, Ex-PBOC Official Says
- Spillover effect includes weaker currencies, outflows: Sheng
- Fed ‘harming others without benefiting itself’ with rate hikes
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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The US Federal Reserve’s most aggressive interest-rate hike cycle since the 1980s is destabilizing global financial markets and harming other economies, a former Chinese central bank official warned.
The Fed’s decision to lift interest rates sharply to combat stubbornly high inflation is weakening many major currencies and spurring capital outflows from developing countries, Sheng Songcheng, a former director of the People’s Bank of China’s statistics and analysis department, said in an interview.