# FED’s impacts on Vietnam’s economy

> The Fed raised rates by 50 basis points at its May 3-4 meeting, the largest single increase since 2000, and signalled further hikes to contain inflation. Markets expect a policy rate of 2.5-3.0% by end-2022. The Fed also began shrinking its balance sheet in June, starting at $47.5 billion per month.

- Date: 2022-05-21 · published 2022-05-21T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/41705-fed-s-impacts-on-vietnam-s-economy
- Commodities: [Vietnamese Dong (VND per USD)](https://feedsoft.ai/c/USDVND.md)

## Why it matters

Tighter US financial conditions strengthen the dollar and raise borrowing costs, which can weigh on dollar-denominated commodity prices and slow global demand for animal protein and feed. The balance-sheet runoff is small relative to the Fed's holdings, so its direct liquidity effect is limited.

## Sources

- en.diendandoanhnghiep.vn: https://en.diendandoanhnghiep.vn/fed-s-impacts-on-vietnam-s-economy-n34276.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.