CROSBY Research – Crosby Bi-noculars (Bi-weekly Issue 53)

26 Feb 2024

2023 the global economic activities were sluggish. The US Federal Reserve, in an attempt to tame the inflation caused by a massive pandemic induced quantitative easing, embarked upon a rapid tightening program, raising interest rates seven times since early 2022 to a peak of 5.5% last year. Not only did the high interest rate impact capital investments, especially for the manufacturing sector, they also suppressed overall consumption, pushing up the leading costs leading to even heavier debt burden and increased default risk levels worldwide.