US interest rates and China’s economy will interact with one another in 2019-2020 as China’s debt levels become unsustainable. The Federal Reserve’s power to influence global interest rates will be the determining factor for the global economy. The Fed will have to move quickly to contain the fallout of the crisis from harming other indebted emerging economies, with an eye to ensuring the continued supremacy of the US dollar. Interest rates and currency exchange rates may fluctuate significantly in a several brief time periods, as forecast in this analysis.
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