Assessing the Impact of The Fed's Policy on Emerging Markets

In early 2022, there are three global issues that market players need to pay close attention to, namely world inflation, market uncertainty in responding to the Fed's policies, and developments in COVID-19.

Specifically for the Fed's policy, Advisor to the Minister of Finance for Finance and Sharia Finance, Halim Alamsyah said there was USD 8.7 trillion in the US central bank's balance sheet in the form of securities. “This is a tremendous bubble compared to 5 years ago of only about USD 4.5 trillion. The market is aware of global liquidity; abundantly due to QE from developed country central banks," he said in Sinarmas Sekuritas & Sinarmas Asset Management, Wednesday (12/1/2022). He considered, there are a number of factors that will affect the determination of interest rates, including the exchange rate and country risk. However, Halim said these two factors are still difficult to predict. This is due to uncertainty about the economic strength of developing countries facing trade shocks, capital outflows and adjustments to the balance sheets of the private sector which is not in debt and has poor asset quality

|•SOURCE•| Articles :LIPUTAN 6 | Image :BAREKSA |

READ MORE

|• NATIONAL •|Bank Sinarmas Cares for literacy
|• INTERNATIONAL •|Crocodile Conservation in muba
|• TECHNOLOGY •|Smartfren Opens Up About News
|• SOCIAL •|Eka Tjipta Foundation and Kanisius Hold Vaccination
|• BUSINESS •|CPO Price Heats up