In a quest to bring down the multi-decade high inflation, the Federal Reserve raised the benchmark interest rates by another 0.75 percentage point on Wednesday, taking its federal funds rate up to a range of 3%-3.25%, the highest since early 2008. Additionally, Fed officials have signaled further aggressive hikes until its terminal rate reaches 4.6% in 2023.
With central banks around the globe simultaneously raising interest rates to fight persistently high inflation, the World Bank sees the possibility of a global recession and devastating consequences for emerging markets and developing economies. “Global growth is slowing sharply, with further slowing likely as more countries fall into recession,” said David Malpass, the President of World Bank.
