He said Chairman of Nasser Al-Saidi & Partners, Dr. Nasser Al-Saeedi, The high rates of inflation in the United States, which were announced yesterday, Wednesday, will prompt the US Federal Reserve to raise interest rates quickly, and it is expected to increase them by 100 basis points at the end of this month, and it is expected to raise them between 75 and 100 points or more until the end of this year.
Al-Saidi added in an interview with Al-Arabiya that the Fed can control the factors inside America, but it cannot influence global external factors, such as oil prices, and therefore it is difficult for the US Federal Reserve to reach its goal of reducing inflation to 2% within a period of 3 to 6 months. Months.
He explained that this means that interest rates will remain high until next year or 2024, so that the Fed can control inflation, noting that unemployment will rise, which the Fed must accept during the coming period.
Al-Saeedi expected the unemployment rate in America to rise to between 4% and 4.5%, considering that this is normal, but he said that it is not acceptable to continue the rise in core inflation, which will affect politically as well.
He also expected an economic recession in Europe first, during the third or fourth quarter of 2022, and secondly in America at the beginning of next year or before, pointing out that global markets took this into account.
Al-Saidi said that emerging markets will suffer from high interest rates and the rise of the dollar, which increases the price of imported goods, and will also face problems due to the rise in food prices.