The Fed’s Aggressive Monetary Policy Tightening: New Headwinds for Emerging Markets

By Kavaljit Singh | Briefing Paper # 50 | January 21, 2022

Monetary policy normalization is happening in the US. Recent developments indicate that the Federal Reserve is adopting an aggressive stance toward its monetary policy and is eyeing interest rate hikes early this year. An earlier and faster normalization of monetary policy by the US Fed increases the risks to macroeconomic and financial stability in emerging markets and low-income countries. Their policymakers must make full use of the available policy levers to strengthen macroeconomic fundamentals and policy frameworks…

Direct Link: https://www.madhyam.org.in/the-feds-aggressive-monetary-policy-tightening-new-headwinds-for-emerging-markets/