u.s.-China Relationship: Economy and Interest Rates

u.s.-china relationship: But a strong American economy will exacerbate structural imbalances in the global economy as the value of the dollar climbs and other economies battle capital flight, according to The Japan Times. In particular, there are real concerns about China's prospects and growing tension in the U.S.-China relationship. The move was widely expected in the wake of Donald Trump's election as the next U.S. president given his plans for tax cuts and infrastructure spending to boost the economy and their tendency to spur inflation. The Fed has kept short-term interest rates steady and low since the 2007-08 global financial crisis, raising them only twice during that time. As the U.S. economy recovered and began to expand and unemployment dropped below 5 percent, there has been a renewed focus on inflationary pressures. The Fed, like other central banks, kept interest rates low nearly zero to provide liquidity to markets, to stimulate demand, and to ensure that prices did not collapse. (news.financializer.com). As reported in the news.