Fed's Bowman Signals More Rate Hikes Needed to Tackle Inflation and Achieve Target

The Federal Reserve's campaign to fight inflation by raising interest rates over the past 18 months has had ripple effects on emerging markets and may have increased the risk of economic and social instability, particularly in lower-income nations. The rising U.S. interest rates have led to currency depreciation, debt distress, and limited borrowing capacity for developing countries. This has widened the wealth gap, increased poverty, and exacerbated income inequality. The World Bank warns of a "multi-year period of slow growth" for developing nations, which will further exacerbate poverty rates. The impact of higher interest rates in the U.S. can have detrimental effects on the economic, political, and social well-being of these countries.