10.05.2022, 10:55
ABC: The US Federal Reserve has Identified the Main Threat to the Global Financial System
Source: OREANDA-NEWS
OREANDA-NEWS. The crisis in Ukraine and record inflation have displaced the coronavirus pandemic from the list of the most serious threats facing the global financial system. It is reported by the ABC News channel with reference to the Federal Reserve System.
For the most part, events in Ukraine have led to increased economic uncertainty, according to the Fed.
The ABC article said that further adverse inflation and interest rate developments, especially if accompanied by a slowdown in economic activity, could negatively impact the financial system.
Earlier it was reported that Russia saw the first signs of blowing off the economic "bubble" in the United States.
Professor of the Department of Economics and Finance of the Volgograd branch of the Russian University of Economics. GV Plekhanova Marina Goncharova spoke in an interview with the Prime agency about the possible collapse of the US economic bubble.
She recalled that the growth of the United States economy was caused by the massive printing of dollars, which were needed in international payments, as well as for the formation of state reserves and loans. Most of the dollar supply went to other countries, and high liquidity played an important role in ensuring the leadership of the American currency in the world. Its share in settlements on the world market reached approximately 85%. At the same time, the share of the real product in the total US GDP remains low, since the production of goods is located in third countries, the economist pointed out.
In her opinion, due to the above factors, undermining the authority of the dollar as a reserve currency and the main means of international payments may cause the US economic "bubble" to collapse. The expert also believes that the transition in international settlements to other currencies after the freezing of Russia's assets, which is now taking place, can “turn off” the dollar from a large number of international transactions, which will lead to a decrease in demand for it.
Goncharova is seeing signs of the American “bubble” blowing away in the record for the last 40 years of inflation, rising prices, shortages of goods and products in the United States.
For the most part, events in Ukraine have led to increased economic uncertainty, according to the Fed.
The ABC article said that further adverse inflation and interest rate developments, especially if accompanied by a slowdown in economic activity, could negatively impact the financial system.
Earlier it was reported that Russia saw the first signs of blowing off the economic "bubble" in the United States.
Professor of the Department of Economics and Finance of the Volgograd branch of the Russian University of Economics. GV Plekhanova Marina Goncharova spoke in an interview with the Prime agency about the possible collapse of the US economic bubble.
She recalled that the growth of the United States economy was caused by the massive printing of dollars, which were needed in international payments, as well as for the formation of state reserves and loans. Most of the dollar supply went to other countries, and high liquidity played an important role in ensuring the leadership of the American currency in the world. Its share in settlements on the world market reached approximately 85%. At the same time, the share of the real product in the total US GDP remains low, since the production of goods is located in third countries, the economist pointed out.
In her opinion, due to the above factors, undermining the authority of the dollar as a reserve currency and the main means of international payments may cause the US economic "bubble" to collapse. The expert also believes that the transition in international settlements to other currencies after the freezing of Russia's assets, which is now taking place, can “turn off” the dollar from a large number of international transactions, which will lead to a decrease in demand for it.
Goncharova is seeing signs of the American “bubble” blowing away in the record for the last 40 years of inflation, rising prices, shortages of goods and products in the United States.
Комментарии