Wrestling with inflation, country debt levels at historic highs and pandemic related economic shocks, many of the world’s central bankers met in Jackson Hole, Wyoming to discuss managing the economies of countries.
Jubilee USA Network in a release stated that The annual Federal Reserve 2-day policy symposium, “Structural Shifts in the Global Economy,” includes remarks from Federal Reserve Chair Jerome Powell, European Central Bank President Christine Lagarde and Ngozi Okonjo-Iweala, World Trade Organization Director General.
This year’s theme explored several significant, and potentially long-lasting developments affecting the global economy. While the immediate disruption of the pandemic is fading, there likely will be long-lasting aftereffects for how economies are structured, both domestically and globally, as trade networks shift, and global financial flows react.
“All over the world people can’t afford food and poverty is increasing,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. “Developing countries already pay 7% of their revenue on the interest of their debts. When the Federal Reserve raises interest rates, it means debts increase for countries in crisis.”
In April, the IMF forecast the weakest growth in decades. Central banks continue pursuing measures, such as raising interest rates, attempting to fight inflation.
“Central bankers must weigh the reality that more than 165 million people became poor since 2020,” noted LeCompte. “If the debts of developing countries continue to go up, countries have less resources to address poverty. When the debts of developing countries increase, food and fuel prices increase across the United States and Europe.”
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Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world’s poorest people. www.jubileeusa.org
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