FT News Briefing The Federal Reserve finally raises rates
Mar 17, 2022
The Federal Reserve raises interest rates for the first time since 2018, signaling a critical shift for the U.S. economy. European energy traders seek central bank interventions to avoid a cash crisis amid rising costs. China grapples with its loyalty to Russia, facing potential economic fallout and sanctions. This relationship creates challenges for Chinese firms navigating Western markets. The podcast highlights the urgent need for liquidity assistance as energy crises escalate, revealing the intricate ties between geopolitics and economic stability.
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Fed Raises Interest Rates
- The Federal Reserve raised its key interest rate for the first time since 2018 to combat inflation.
- Economists express concern that interest rates may need to rise more significantly than the Fed's initial projections.
China Reassures Investors
- China's top economic official reassured investors with measures to support the economy and financial markets.
- This follows recent sharp sell-offs in Chinese and Hong Kong stock markets.
Cost of Loyalty to Moscow
- Xi Jinping's loyalty to Moscow could cost China economically, particularly concerning technology and banking.
- China fears sanctions affecting its businesses if they continue operating in Russia despite pledges of support to Putin.