In response to the hotter-than-expected CPI data for August, the Fed increased interest rates by 75 basis points for the third consecutive time yesterday. The central bank has also hinted at maintaining its aggressive stance until inflation comes under control. Therefore, many economists expect the economy to witness a recession by the end of this year.
With the United States, China, and Europe experiencing a slowdown, World Bank President David Malpass worries that the ‘global growth is slowing sharply’ and is most likely to have devastating consequences for emerging markets and developing economies.
