Translated by: MOS Education team – Naughty
In a speech at the World Economic Forum in Davos, Switzerland, on Jan. 17, the Chinese Communist Party leader, Xi Jinping, warned that a global confrontation between major powers could have “disastrous consequences.”He warned the Fed not to raise interest rates.
“If major economies brake sharply or turns around their monetary policy, there will be serious negative spillover effects.They will pose a challenge to global economic and financial stability, and developing countries will bear the brunt.” Xi Jinping said in his speech.
The Fed is now expected to raise interest rates four times, and at the same time, it is that the Fed will begin reducing the size of its nearly $9 trillion balance sheet. The yield on the benchmark 10-year Treasury note TMUBMUSD10Y was 1.855% on Tuesday, reaching its highest level since January 2020.
Traditionally, Fed officials have ignored concerns about how their policies affect other economies, saying they can only formulate monetary policy for the U.S. economy.
Therefore, Xi Jinping has reason to be nervous about the Fed’s tightening policy, stressing that “major developed countries should adopt responsible economic policies, and keep the policy spillovers effect under control to avoid bringing serious shocks to developing countries.”
Editor in Chief: Maverick
Proofread/Published by: Maverick
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