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16-06-2022, 06:12 PM
https://www.straitstimes.com/business/ec...-singapore
Fed rate hikes raise threat of US recession, higher borrowing costs in S'pore
The biggest Federal Reserve rate hike in 28 years portends higher costs of borrowing and will likely depress consumer sentiment, potentially sending the US economy into a sharp slowdown, if not a recession.
That seems to be the emerging consensus as the world wakes up to Fed decision to raise its benchmark federal funds rate by 75 basis points to a range of 1.5 per cent to 1.75 per cent. The move has a direct impact on things such as credit card bills, new car loans and mortgages, though the Fed does not set those interest rates itself.
The Fed will also aggressively tighten its US$5 trillion (S$6.9 trillion) cache of liquidity that it poured into the US economy during the Covid-19 pandemic.
Fed rate hikes raise threat of US recession, higher borrowing costs in S'pore
The biggest Federal Reserve rate hike in 28 years portends higher costs of borrowing and will likely depress consumer sentiment, potentially sending the US economy into a sharp slowdown, if not a recession.
That seems to be the emerging consensus as the world wakes up to Fed decision to raise its benchmark federal funds rate by 75 basis points to a range of 1.5 per cent to 1.75 per cent. The move has a direct impact on things such as credit card bills, new car loans and mortgages, though the Fed does not set those interest rates itself.
The Fed will also aggressively tighten its US$5 trillion (S$6.9 trillion) cache of liquidity that it poured into the US economy during the Covid-19 pandemic.
