Recently, the Federal Reserve announced a 50 basis point interest rate hike in an attempt to deal with the country's worst inflation in 40 years by tightening monetary policy.

However, this approach is undoubtedly an attempt by the United States to pass on the crisis to the world by relying on its dollar hegemony. It will especially cause heavy damage to emerging economies, and has therefore been questioned and criticized by all parties.

*? Patricio Giusto, director of the Argentina-China Research Center, said in an interview with a reporter from the main station that the U.S. inflation index is too high and it may not be effective to curb inflation by raising interest rates. Instead, it will severely damage the global economic recovery.

*? *? Patricio Giusto, Director of the Argentina-China Research Center: The main purpose of the Fed’s interest rate hike is to curb high inflation in the United States, but it will cause very serious negative spillover effects on the global economy, especially in Latin America.

Prices in emerging economies continue to rise, loan costs increase, currencies continue to depreciate, people's living costs increase, and unemployment rates rise. These will have a very serious impact on emerging economies in Latin America.

*? *? Patricio Giusto, Director of the Argentina-China Research Center: In addition, affected by the new coronavirus epidemic and the Russia-Ukraine conflict, Latin American countries are burdened with more debt pressure, and the Federal Reserve’s interest rate hikes will further intensify the pressure on these countries.

The cost of servicing dollar debt.

In short, it will be difficult for the Federal Reserve to raise interest rates to curb the current high inflation in the United States in the short term. Instead, it will have a more serious negative impact on the Latin American and global economies.