The projection of the Federal Reserve (the US Central Bank) that there will be three 0.25 percentage point increases in interest rates by the end of 2022 should be observed by economies around the world, in the assessment of Thomas Giuberti, of Golden Investimentos, in an interview with CNN Rádio.
. According to him, interest works like “a tap”. If it is closed, less money runs for everyone. With it closed, more money circulates.
The signal, according to Thomas, is that the US financial authority will “accelerate the withdrawal of financial stimuli adopted during the pandemic and, then, will feel the economy to see interest rates rise”.
Even so, the expert emphasizes that the Fed “knows that it cannot make a sudden move, because that would harm the global financial system.”
“Any movement should be smooth, because in the past, in the 90’s, many emerging countries suffered a lot due to lack of liquidity, if they are too aggressive it will harm global growth and the resumption of the production chain”, he added.
Giuberti also assesses that, for next year, inflation in the world is no longer transitory, it is already real, as said by Jerome Powell, the president of the Fed. the consequences, you have to raise interest rates and control the rise in prices in the economy,” he said.
Reference: CNN Brasil
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