The Federal Reserve Bank of New York pointed out that China's loosening and zeroing policy has led to the outbreak of the epidemic, the global supply chain has been affected, and uncertainty has increased, which may affect the decline in high inflation in the United States.

(Associated Press)

[Compilation of Lu Yongshan/Comprehensive Report] According to reports from RFA, the Federal Reserve Bank of New York released the "Global Supply Chain Stress Report" on the 6th, pointing out that China's sudden loosening of the zero-clearing policy in early December last year led to a violent outbreak of the domestic epidemic, and the global supply chain has been affected. Affected by rising uncertainties, it may affect the decline of high inflation in the United States.

 According to the report, the global supply chain pressure index in December last year dropped from 1.23 revised in November to 1.18; since the spring of last year, the pressure on the supply chain has been significantly relieved, and then rose again after bottoming out in September last year, showing a narrow range recently. fluctuation.

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 Economists at the Federal Reserve Bank of New York said that the global supply chain stress index has remained flat in the past three months, which is believed to be related to the deterioration of the Wuhan pneumonia epidemic in China.

Before China relaxed the epidemic prevention measures, it still insisted on the zero-clearing policy, which affected the opening of factories and put pressure on the supply chain. The goods cannot be shipped out of China smoothly.

 The report also mentioned that the recent outbreak of the epidemic in China is affecting other Asian economies, and the future impact on the global supply chain is full of uncertainty; the impact of China's relaxation of epidemic prevention measures is still unclear, as well as the resulting infections, hospitalizations and deaths , how the trend of the global supply chain pressure index will evolve in the future deserves attention.

 Since the outbreak of the Wuhan pneumonia epidemic in the spring of 2020, the global supply chain has been severely damaged, and it has become the main reason for pushing up inflation in the United States.

In the case of high inflation, the US Federal Reserve (Fed) has to raise interest rates at an aggressive pace.

The market expects that the Fed will continue to raise interest rates this year to combat high inflation.

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