The U.S. Federal Reserve (FED) raised interest rates by 0.25 percentage points on Wednesday. That decision has consequences for countries across the world, including Argentina and local financial assets, because it affects the cost of money and the direction of capital flows. Economist Federico Glustein pointed out that a 0.25% rate hike is related to the US monetary contraction process. But he anticipates that this new increase will mean a decrease in global liquidity volumes, which will also drive a downward trend in financial assets. However, this has been reversed in recent months, and the prospect of the Federal Reserve not raising the interest rate as much helps.

Source: Bueno Aires Herald May 05, 2023 14:00 UTC