The Financial Turmoil Caused by the Fed's Sharp Rate Hike: Reasons, Impacts and Countermeasures

Research Article
Open access

The Financial Turmoil Caused by the Fed's Sharp Rate Hike: Reasons, Impacts and Countermeasures

Dianjiang Cai 1*
  • 1 Huaqiao University    
  • *corresponding author 2024107001@stu.hqu.edu.cn
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/36/20231790
AEMPS Vol.36
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-093-6
ISBN (Online): 978-1-83558-094-3

Abstract

Facing inflation that is gradually getting out of control, the Federal Reserve will start to raise interest rates sharply in 2022. The process of raising interest rates is historic, and the impact is also global. For the financial market in the United States, the stock market is negative, and the bond market is on the rise. Not only in the United States, but the Bank of England has also issued several documents to raise the interest rate of the pound. This article mainly analyzes the impact of China's current round of interest rate hikes and the corresponding monetary policy measures adopted to stabilize China's financial and national economic markets, and hopes that China's RMB can increase its international influence and continue to strengthen the international market after the Covid-19 pandemic is unblocked. To increase the international influence of the RMB through trade can increase the number of countries that conduct RMB transactions directly. Fundamentally reduce the impact of dollar changes on the Chinese economy.

Keywords:

inflation, Fed rate hike, Chinese monetary policy

Cai,D. (2023). The Financial Turmoil Caused by the Fed's Sharp Rate Hike: Reasons, Impacts and Countermeasures. Advances in Economics, Management and Political Sciences,36,93-98.
Export citation

References

[1]. Macroview Club. (2023). US Fed rate upper limit. https://www.macroview.club/data?code=us_fed_rate_upper_limit.

[2]. Macroview Club. (2023) US _fed_assets. https://www.macroview.club/data?code=us_fed_assets.

[3]. Macroview Club. (2023) US CPI. https://www.macroview.club/data?code=us_cpi.

[4]. Macroview Club. (2023) US fed rate. https://www.macroview.club/data?code=us_fed_rate.

[5]. Macroview Club. (2023) US _fed rate lower limit. https://www.macroview.club/data?code=us_fed_rate_lower_limit

[6]. Yahoo Finance (2023) https://finance.yahoo.com/quote/YM%3DF?p=YM%3DF.

[7]. David Randall. (2023). Analysis: Banking woes, Fed keep US market investors on edge. https://www.reuters.com/markets/us/banking-woes-fed-keep-investors-edge-nervous-us-stock-market-2023-03-25/

[8]. Reuters (2023) Morning Bid: Bank stress, bond volatility and disinflation. https://www.reuters.com/markets/global-markets-view-usa-2023-03-14/.

[9]. US Bank. (2023) How rising interest rates impact the bond market. https://www.usbank.com/investing/financial-perspectives/market-news/interest-rates-affect-bonds.html.

[10]. H. Geman, (2023) From Lehman to Silicon Valley Bank and Beyond: Why Are Mistakes repeated in the US banking system?. Policy Center for the New South. 16/23.

[11]. Y L v, (2019) Analysis of the impact of the Fed's interest rate hike on China's foreign exchange market. Modern Marketing (Information Edition), 105-106.

[12]. Y Yang, (2020) The Spillover Effects of Fed's Tightening Monetary Policy on China's Economy. https://kns.cnki.net/kcms2/article/abstract?v=3uoqIhG8C475KOm_zrgu4lQARvep2SAkHr3ADhkADnVu66WViDP_3LkmKdB_OMJ-MOGwLi7HjWE1BZ0nN2Gdk1JFjPsaUp3J&uniplatform=NZKPT&src=copy

[13]. Y Chen, Z Huang, Y Zeng, (2023) Powell's "hawkish" speech, the Fed's interest rate hike expectations have increased sharply! How should China respond? https://baijiahao.baidu.com/s?id=1759794583452436733&wfr=spider&for=pc.

[14]. Y Yang (2022) The Spillover Effect of Future Fed Rate hike on China's Economy and Countermeasures. https://kns.cnki.net/kcms2/article/abstract?v=3uoqIhG8C475KOm_zrgu4lQARvep2SAke-wuWrktdE-tSIT2YIbQ2FJ4LIc05_TmiJ2x6S1_ZDk5Ijf-ZuchQ0P4l1SPJg5y&uniplatform=NZKPT&src =copy.

Cite this article

Cai,D. (2023). The Financial Turmoil Caused by the Fed's Sharp Rate Hike: Reasons, Impacts and Countermeasures. Advances in Economics, Management and Political Sciences,36,93-98.

Data availability

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

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

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

ISBN：978-1-83558-093-6(Print) / 978-1-83558-094-3(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.36
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Macroview Club. (2023). US Fed rate upper limit. https://www.macroview.club/data?code=us_fed_rate_upper_limit.

[2]. Macroview Club. (2023) US _fed_assets. https://www.macroview.club/data?code=us_fed_assets.

[3]. Macroview Club. (2023) US CPI. https://www.macroview.club/data?code=us_cpi.

[4]. Macroview Club. (2023) US fed rate. https://www.macroview.club/data?code=us_fed_rate.

[5]. Macroview Club. (2023) US _fed rate lower limit. https://www.macroview.club/data?code=us_fed_rate_lower_limit

[6]. Yahoo Finance (2023) https://finance.yahoo.com/quote/YM%3DF?p=YM%3DF.

[7]. David Randall. (2023). Analysis: Banking woes, Fed keep US market investors on edge. https://www.reuters.com/markets/us/banking-woes-fed-keep-investors-edge-nervous-us-stock-market-2023-03-25/

[8]. Reuters (2023) Morning Bid: Bank stress, bond volatility and disinflation. https://www.reuters.com/markets/global-markets-view-usa-2023-03-14/.

[9]. US Bank. (2023) How rising interest rates impact the bond market. https://www.usbank.com/investing/financial-perspectives/market-news/interest-rates-affect-bonds.html.

[10]. H. Geman, (2023) From Lehman to Silicon Valley Bank and Beyond: Why Are Mistakes repeated in the US banking system?. Policy Center for the New South. 16/23.

[11]. Y L v, (2019) Analysis of the impact of the Fed's interest rate hike on China's foreign exchange market. Modern Marketing (Information Edition), 105-106.

[12]. Y Yang, (2020) The Spillover Effects of Fed's Tightening Monetary Policy on China's Economy. https://kns.cnki.net/kcms2/article/abstract?v=3uoqIhG8C475KOm_zrgu4lQARvep2SAkHr3ADhkADnVu66WViDP_3LkmKdB_OMJ-MOGwLi7HjWE1BZ0nN2Gdk1JFjPsaUp3J&uniplatform=NZKPT&src=copy

[13]. Y Chen, Z Huang, Y Zeng, (2023) Powell's "hawkish" speech, the Fed's interest rate hike expectations have increased sharply! How should China respond? https://baijiahao.baidu.com/s?id=1759794583452436733&wfr=spider&for=pc.

[14]. Y Yang (2022) The Spillover Effect of Future Fed Rate hike on China's Economy and Countermeasures. https://kns.cnki.net/kcms2/article/abstract?v=3uoqIhG8C475KOm_zrgu4lQARvep2SAke-wuWrktdE-tSIT2YIbQ2FJ4LIc05_TmiJ2x6S1_ZDk5Ijf-ZuchQ0P4l1SPJg5y&uniplatform=NZKPT&src =copy.

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.