One of the important names of the political and business world; Esen Ermis Erturkanalyzed the latest developments and expectations in the global economy. Esen, who gave important warnings as a business person who was educated in the field of eco-politics in the academic and business world, started his words "Do not be deceived, be careful in this process".
None of the open economies can tell us what the Fed is raising interest rates for, because the Fed's rate hike means higher costs of doing business for both public and private companies as borrowing costs rise. In addition, the Fed's rate hike means an increase in the value of the dollar and a slowdown in growth. In global economies, it means a result that will harm everyone, especially developing economies.
Let's remember, the Fed reduced the policy rate from 0-0,25 percent to 0,25-0,50 percent at its meeting in March. In addition, Fed Chairman Jerome Powell, in his speech last week, said that a 3 basis point increase is possible at the Fed's May 4-50 meeting. However, the view that the Fed should take faster rate hike steps started to come to the fore. In order to avoid a bigger shock wave in the markets, the Fed usually signals how much the interest rate can increase with verbal guidance.
The only problem in the global economy is not that the Fed will raise interest rates. The continuation of quarantine measures within the scope of the coronavirus epidemic in China, the escalation of tension in the Russia-Ukraine war and the rising inflation rates in the economy giants continue to shake the commodity markets.
Money loves predictability and goes where it's safe. Investors are currently asking the following questions; Which country, which sector or which commodity is a safe harbor in the world? Let alone the news of buying and selling virtual products, coins, nft, metaverse land, what level will the world economy reach in the medium and long term?
Could we be living quarterbacks knocking the table? If so, we must be at the table without looking at the finger while the cards are being redistributed. In the words of my esteemed professors who follow my economic cycles, what I see in the real economy and trade requires asking the right questions and making decisions without letting them go. I would like to remind you that you did not pay any fee, did not sign a contract, and did not receive investment advice from any non-corporate person. There are periods of economic crisis in every country where there are opportunists and victims. Unfortunately it.
FED, economy, Esen Ermis Ertürk, global economy
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