Expert analysis: Fed can hardly dispel global market’s worries about US financial risks

On May 4th, Li Fuyi, an associate researcher at the Institute of Foreign Economics of the China Academy of Macroeconomics, said that in terms of the global impact of the Federal Reserve interest rate meeting, it actually needs further observation. The first point is that raising interest rates will bring about a strengthening of the U.S. dollar, but at the end of the cycle of raising interest rates, rising expectations will lead to relative appreciation of other currencies and a relative weakening of the U.S. dollar. At that time, some countries’ exports will face certain pressure, but it is also conducive to imports and balance of payments. However, even if the Federal Reserve suspends interest rate hikes, it will be difficult to dispel the global market’s concerns about the financial risks in the United States and the downward pressure on the country’s economy brought about by the weakening of large economies such as the United States and Europe in the short term.