U.S. Federal Reserve Chair Jerome Powell attends a press conference in Washington, D.C., the United States, on Sept. 21, 2022. (Photo by Alexander Norton/Xinhua)
Central banks in Switzerland, the United Kingdom, Norway, Indonesia, South Africa, Nigeria and the Philippines followed the Fed in boosting rates over the past week.
NEW YORK, Sept. 30 (Xinhua) -- The Federal Reserve is laser-focused on stemming price increases in the United States, but countries thousands of miles away are reeling from its hardball campaign to strangle inflation, as their central banks are forced to hike interest rates faster and higher and a runaway dollar pushes down the value of their currencies, reported CNN on Wednesday.
The Fed's decision to raise rates by three-quarters of a percentage point at three consecutive meetings, while signaling more large hikes are on the way, has pushed its counterparts around the world to get tougher, too, according to the report.
"If they fall too far behind the Fed, investors could pull money from their financial markets, causing serious disruptions," the report noted.
Central banks in Switzerland, the United Kingdom, Norway, Indonesia, South Africa, Nigeria and the Philippines followed the Fed in boosting rates over the past week, it said.
"The Fed's stance has also pushed the dollar to two-decade highs against a basket of major currencies," it added. "This dynamic -- in which the Fed essentially exports inflation -- adds pressure on local central banks." ■