United Nations Calls on Fed to Stop Interest Rate Increases: Global Recession Risk

The United Nations is calling on the Fed and other central banks to stop interest rate increases, a UN agency says, warning of a potential global recession. The Federal Reserve and other central banks risk pushing the global economy into recession followed by prolonged stagnation if they keep raising interest rates, a United Nations agency has warned.

On November 2, the Federal Reserve voted once again to raise interest rates by 0.75%. This decision is the latest in a long series of rate hikes designed to combat record-setting US inflation. However, The United Nations Conference on Trade and Development (UNCTAD) advised developed nations like the United States to refrain from implementing aggressive monetary policy.

The United Nations Conference on Trade and Development is calling on central banks in major economies to reverse course on raising interest rates, stating that it is a dangerous path for global economic stability. The UN has called on central banks not to increase interest rates and depart from the monetary policy being pursued by a large number of western regulators, including the US. This follows similar calls for caution from other international bodies.

A United Nations agency is warning that the central bank’s actions create a high risk of pushing the global economy into recession. The core concern highlighted in a recent UN report is that interest rate increases this year alone could cut $360 billion of future income for developing countries by driving up the value of the US dollar.

Banks worldwide have increased their interest rates in response to the Fed's actions, further exacerbating the potential for a global economic downturn. Thus, the UN calls on international regulators to reconsider their current monetary policies to avert a potential crisis and promote sustainable economic growth.