Financial TimesFinancial Times

The world is starting to hate the Fed

By Edward Luce

12 Oct 2022 · 3 min read

Editor's Note

The Fed is “exporting recession.” A FT columnist argues that the U.S. is indifferent to how its fight against inflation and domestic spending policies are negatively impacting the rest of the world.

A French leader once called the dollar America’s “exorbitant privilege”. Today’s world might go for blunter language. Vector of pain, anyone? Green monster?

Whatever we call it, the strong dollar’s victims have one culprit in mind — the Federal Reserve. Even Josep Borrell, the EU’s foreign policy chief, is joining in. This week he warned that the Fed was exporting recession in the same way the euro crisis was imposed by Germany’s post-2008 dictates. Much of the world is now in danger of becoming Greece.

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