Global markets struggle as inflation looms

Global markets are seeing a drastic change in the economy with investors bracing for more chaotic turns as the world’s banks try to combat soaring inflation.

The rise and fall
Central banks raising interest rates globally at the same time in history show a clear picture of the universal response taken to save the tumbling economy. 

The Federal Reserve hiked up interest rates for the fifth time this year as the US continues to combat rising inflation. In a shocking turn, Sweden’s Riksbanken increased its reference rate by a percentage point.

The global economic conditions seemed to affect the stock market the most. Stocks declined almost everywhere, with S&P 500 and Nasdaq officially entering the bear market a few months back. The Dow Jones Industrial Average followed but narrowly missed confirming its bear market status late last week.  

World currencies are also witnessing a change, with Japan raising the Yen value for the first time since 1998. Meanwhile, the UK pound plunged into a 37-year decline after the country released its new budget plan. The US dollar value continues to increase during these uncertain times.