The Global Impact of and Response to the Fed's Interest Rate Hike

Abstract

The international situation is tense, and the international economic situation is in a state of instability. Political factors similar to the Russian-Ukrainian war and the Palestinian-Israeli conflict continue to affect international economic trade deeply. As the country with the highest global GDP, the United States, its economic policy has a pivotal impact on the global economy. Because of the instability of the external environment and violent internal conflicts, coupled with the local economic situation being in a downward phase, the United States has adopted a more extreme monetary policy of interest rate hikes to absorb the dollar capital from all over the world back to the United States. This article is based on the U.S. interest rate hike for the U.S. itself, developed capitalist countries, the Chinese region, and the Asian economic backwardness of the country's impact, as well as some of the countries for the U.S. interest rate hike policy to take measures, and combined with the U.S. interest rate hike in the past the purpose and impact of the U.S. to analyze the United States of America's further economic decision-making trends and the future trend of the international economic and political trends, and to explore the China and other countries to better cope with the method. The study finds that the Fed's big move to carry out the interest rate hike this time is related to the unemployment problem within the United States, the racial problem and cultural conflict, as well as the leftover problems after the end of the epidemic, and uses this as a lead to try to adjust the economic situation of the whole world. Through the tidal wave of the dollar, hostile countries are weakened, paving the way for future wars or better control of the entire international situation.