MacKinnon: Fed Puts Pressure on EM Central Banks

The video discusses the pressures on emerging market central banks due to currency fluctuations ahead of a Federal Reserve decision. It explores the potential impact of Fed rate hikes on equity markets and the strength of the dollar. The discussion includes concerns about global economic issues, such as trade protectionism under President-elect Trump and pressures from China. The video also examines the influence of a stronger dollar on global finance, particularly its effect on emerging market debt and the potential for a global rate hike.

What is the main concern for emerging market central banks ahead of the Federal Reserve's decision?

• Trade agreements

• Currency depreciation

• Inflation rates

• Stock market volatility

What is a potential consequence of the dollar continuing to strengthen?

• Increased global trade

• Higher inflation in the US

• Lower interest rates

• Trade protectionism

Which countries are likely to be most affected by a stronger dollar?

• Countries with large current account surpluses

• Countries with high inflation

• Developed countries

• Countries with significant dollar-denominated debt

How does a stronger dollar impact global finance according to the BIS?

• It reduces global liquidity

• It acts as a global rate hike

• It increases global trade

• It stabilizes emerging markets

What is a major concern for emerging markets with dollar-denominated debt?

• Decreased borrowing costs

• Increased funding and liquidity pressures

• Improved trade balances

• Higher economic growth