Strong dollar endangers emerging economies

As the US Federal Reserve raised its benchmark interest rate by 75 basis points last week, its negative spillover effects are building up for the rest of the world. That means the US is taking advantage of the dollar’s status as international currency to diffuse its inflation worldwide, and put headstalls on the world to pull the recovery of the US economy. High inflation hurts global interests and strong dollar is exerting additional pressure on other economies, particularly emerging market economies.