Ignazio Visco is the policy maker at the European Central Bank, who informed that the global trade could get hurt by the economic policies observed by President Trump, whereby speeding up an increment in the interest rates of the U.S. Addressing the “Italian foreign ministry”, Visco stated:
“Given the current situation of the U.S. economy, which is close to full employment, strong fiscal expansion risks having a pro-cyclical impact”.
“In such a case, the process of normalizing monetary conditions undertaken by the Federal Reserve could be less gradual”.
In fact, Visco thinks that emerging market could be expose the hurt and he also added that:
“The consequent appreciation of the dollar and increase in medium-to-long-term interest rates, which up until now have been contained, could accentuate and reverberate their impact on international markets”.
References:
http://www.reuters.com
“Given the current situation of the U.S. economy, which is close to full employment, strong fiscal expansion risks having a pro-cyclical impact”.
“In such a case, the process of normalizing monetary conditions undertaken by the Federal Reserve could be less gradual”.
In fact, Visco thinks that emerging market could be expose the hurt and he also added that:
“The consequent appreciation of the dollar and increase in medium-to-long-term interest rates, which up until now have been contained, could accentuate and reverberate their impact on international markets”.
References:
http://www.reuters.com