Is the Fed causing turmoil in emerging markets?

Aug 31, 2018
HTML EMBED:
COPY
Chris McGrath/Getty Images

Is the Fed causing turmoil in emerging markets?

Aug 31, 2018
Chris McGrath/Getty Images
HTML EMBED:
COPY

It’s been a bad week for emerging market economies. The Turkish lira continues to lose ground against the dollar while the Argentine peso fares even worse, so much so that Argentina’s central bank raised its interest rates to 60 percent. Yes, six-zero. Domestic problems in the two countries have not been helped by the United States. Higher interest rates set by the Federal Reserve make it harder for emerging market economies to hold on to foreign investment and repay their dollar-denominated debts. 

Click the audio player above to hear the full story. 

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.