This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact The Epoch Times Reprints.
Bank authorities warn that cryptocurrencies may harm developing economies.
Central banks around the globe responded to the 2007–2008 global debt crisis by reducing interest rates and loosening monetary policy to encourage consumer spending, investment, employment, and price stability. After seven years the U.S. Federal Reserve lifted interest rates in December and signaled the possibility of gradual rate hikes, a move described by Chairwoman Janet Yellen as a process of “normalization.” Increased flexibility in short-term rates will make U.S. borrowing slightly more expensive and could increase some asset prices. The Federal Reserve anticipates that the rate hike is small enough so as not discourage consumer spending, though analysts express concern that emerging markets and the U.S. housing market may have become too dependent on the loose monetary policy, explains Chris Miller, associate director of the Grand Strategy Program at Yale. The Federal Reserve’s role is to stabilize the U.S. financial system, but the world watches every move.
