- Rapid vaccine rollout in the United States and passage of its $1.9 trillion fiscal stimulus package have boosted its expected economic recovery.
- In anticipation, longer-term US interest rates have risen rapidly, with the rate on 10-year Treasury securities going from under 1 percent at the start of the year to over 1.75 percent in mid-March.
- Our research in the latest World Economic Outlook finds that for emerging markets, what matters is the reason for the rise in US interest rates.
For further details see:
How Rising Interest Rates Could Affect Emerging Markets