Tuesday Jul 5, 2022
Tuesday Jul 5, 2022

Rising interest rates in US will hinder economies


Nepalnews
2022 May 05, 12:21, Washington
Sri Lankans queue up near a fuel station to buy kerosene in Colombo, Sri Lanka, Tuesday, April 12, 2022. When the Federal Reserve raises interest rates -- as it did Wednesday, May 4, 2022 -- the impact doesn’t stop with U.S. homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans. The fallout can be felt beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique and families in poorer countries around the world. (AP Photo)

When the American Federal Reserve raises interest rates — as it did Wednesday — the impact doesn’t stop with U.S. homebuyers paying more for mortgages or Main Street business owners facing costlier bank loans.

The fallout can be felt beyond America’s borders, hitting shopkeepers in Sri Lanka, farmers in Mozambique and families in poorer countries around the world. The impacts abroad range from higher borrowing costs to depreciating currencies.

“It will put pressure on all types of developing countries,” said Eric LeCompte, executive director of the Jubilee USA Network, a coalition of groups seeking to reduce global poverty.


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