Inflation, Monetary Policy, and Economic Impact: Taking the Federal Reserve's Interest Rate Hike as an Example

Research Article
Open access

Inflation, Monetary Policy, and Economic Impact: Taking the Federal Reserve's Interest Rate Hike as an Example

Hengyuan Cui 1* , Peijie Jiang 2
  • 1 Shandong Qingdao NO.17 middle school    
  • 2 Shanghai experimental foreign language school    
  • *corresponding author 1811000406@mail.sit.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/30/20231479
AEMPS Vol.30
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-081-3
ISBN (Online): 978-1-83558-082-0

Abstract

The Federal Reserve’s interest rate hike is one of the key topics of the current research. Due to the status of the dollar in the global economy, the Federal Reserve's interest rate hike has a profound impact. Therefore, this article collected and analyzed the data of interest rate increases of the Federal Reserve in the past five years. This article discusses the reasons for inflation, as well as the impact of the Federal Reserve's interest rate hike on the foreign exchange market. This paper found that the Federal Reserve’s interest rate hike has almost no effect on curbing inflation. As the Federal Reserve’s keeps raising interest rates, less trust in the world leads to a weaker dollar and slower economic growth. With regard to the Federal Reserve continues to raise interest rates, China should take precautionary measures on the premise of ensuring its own economic development and stability. For investors should be timely attention to the Federal Reserve rate hike frequency and response.

Keywords:

federal reserve, inflation, foreign exchange market

Cui,H.;Jiang,P. (2023). Inflation, Monetary Policy, and Economic Impact: Taking the Federal Reserve's Interest Rate Hike as an Example. Advances in Economics, Management and Political Sciences,30,230-235.
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References

[1]. Wage growth vs inflation U.S. 2023. (2023). Statista. https://www.statista.com/statistics/1351276/wage-growth-vs-inflation-us/#:~:text=The%20inflation%20situation%20in%20the%20United%20States%20is

[2]. Trading Economics. (2022b). US Inflation Rate Rises above Forecasts in March. Trading Economics. https://tradingeconomics.com/united-states/inflation-cpi

[3]. Trading Economics. (2022a). US GDP Growth Revised Down to 3.4% in Q3. Tradingeconomics.com; TRADING ECONOMICS. https://tradingeconomics.com/united-states/gdp-growth

[4]. The World Bank. (2022). GDP growth (annual %) | Data. Worldbank.org. https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=US

[5]. Yuan rising in global payments. (2022). English.www.gov.cn. https://english.www.gov.cn/news/topnews/202202/18/content_WS620ef3dfc6d09c94e48a530c.html

[6]. Martin Almuzarra, Agia Sboldone, Wang Ying & Xie Huajun. (2022). How long Will U.S. Inflation Last? What causes it? Financial Market Research (07),76-79.

[7]. Kuaiyi Wealth Management Network. (2021). Annual consumer price inflation rate . (CPI growth rate). https://www.kylc.com/stats/global/yearly_overview/g_inflation_consumer_prices.html

[8]. Zhou Jinghong & Hu Yijian. (2023). The Policy Background, Formation Process and Countermeasures of the Inflation Reduction Act in the United States. International Taxation (03),39-44.

[9]. Huang Qin-Wu Jiao. (2022). Status, causes, Countermeasures and prospects of inflation in the United States. Developmental financial research (6), 61-73. The doi: 10.16556 / j.carol carroll nki KFXJR. 2022.06.004.

[10]. Wang Jian & Li Shuangshuang. (2013). The impact of High US National Debt burden Ratio on economy and countermeasures. East China Economic Management (04),91-97.

Cite this article

Cui,H.;Jiang,P. (2023). Inflation, Monetary Policy, and Economic Impact: Taking the Federal Reserve's Interest Rate Hike as an Example. Advances in Economics, Management and Political Sciences,30,230-235.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-081-3(Print) / 978-1-83558-082-0(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.30
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Wage growth vs inflation U.S. 2023. (2023). Statista. https://www.statista.com/statistics/1351276/wage-growth-vs-inflation-us/#:~:text=The%20inflation%20situation%20in%20the%20United%20States%20is

[2]. Trading Economics. (2022b). US Inflation Rate Rises above Forecasts in March. Trading Economics. https://tradingeconomics.com/united-states/inflation-cpi

[3]. Trading Economics. (2022a). US GDP Growth Revised Down to 3.4% in Q3. Tradingeconomics.com; TRADING ECONOMICS. https://tradingeconomics.com/united-states/gdp-growth

[4]. The World Bank. (2022). GDP growth (annual %) | Data. Worldbank.org. https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=US

[5]. Yuan rising in global payments. (2022). English.www.gov.cn. https://english.www.gov.cn/news/topnews/202202/18/content_WS620ef3dfc6d09c94e48a530c.html

[6]. Martin Almuzarra, Agia Sboldone, Wang Ying & Xie Huajun. (2022). How long Will U.S. Inflation Last? What causes it? Financial Market Research (07),76-79.

[7]. Kuaiyi Wealth Management Network. (2021). Annual consumer price inflation rate . (CPI growth rate). https://www.kylc.com/stats/global/yearly_overview/g_inflation_consumer_prices.html

[8]. Zhou Jinghong & Hu Yijian. (2023). The Policy Background, Formation Process and Countermeasures of the Inflation Reduction Act in the United States. International Taxation (03),39-44.

[9]. Huang Qin-Wu Jiao. (2022). Status, causes, Countermeasures and prospects of inflation in the United States. Developmental financial research (6), 61-73. The doi: 10.16556 / j.carol carroll nki KFXJR. 2022.06.004.

[10]. Wang Jian & Li Shuangshuang. (2013). The impact of High US National Debt burden Ratio on economy and countermeasures. East China Economic Management (04),91-97.

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