At Least We Are Not in Turkey: The Country’s Central Bank Raises Interest Rates to 30%

While the United States stock market futures fall for the third straight day as the Fed signals that interest rates will not fall anytime soon, the United States seems to be in better shape relative to the rest of the world.

Turkey’s central bank moved interest rates up another 500 basis points, for example, as the country’s inflation spins out of control and its currency diminishes.

The value of the country’s currency to the dollar has dropped by close to 80% in the last five years; a third of that loss has come in 2023.

It is a great example of what happens to a country when it does not raise interest rates to fight inflation. Recent rate hikes have been received well by analysts as the policy has shifted. Perhaps Biden’s biggest mistake when it comes to inflation is early on as inflation rose, his administration called it transitory.

Its subsequent explanation of inflation being a global issue is more accurate, but American voters have never seemed to vote on its economic status compared to the global economic outlook.