C‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍ontent of the paper: Executive Summary Introduction: Genera

C‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍ontent of the paper: Executive Summary Introduction: General overview of the financial situation of the US (Debt ceiling and interest rates). • Debt Ceiling : The U.S. Congress on Tuesday approved raising the federal government’s debt limit by $2.5 trillion, to about USD 31.4 trillion. • Debt ceiling raised to avoid debt defaulte. Interes Rates The Federal Reserve will raise interest rates over the second half of 2022 to %2.5 to contain higher inflation rates. How does the U.S. monetary policy affect emerging markets? • Higher US interest rates could boost the dollar which could trigger capital outflows and possibly currency crises in emerging economies. • U.S. monetary policy tightening leads to higher interest rate spreads and a lower probability of refinancing m‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍aturing loans for emerging market borrowers with a higher reliance on foreign banks. What could happen in the foreseeable future? • Bloomberg has forecasted that raising the interest rates could cause a recession at the start of 2023. Which could create a domino effect around the world. What can Emerging economies do to hedge themselves against this? Can the dollar be weaponized? Findings and Conclusion. Helpful sources: If any changes the writers see fit for the content or ideas of the paper, the writer can do so but should be around the‌‍‍‍‌‍‍‌‌‍‍‍‌‍‍‍‍‌‍‍ main idea.