Developing Countries Brace for Impact From Fed Rate Increases

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Developing Countries Brace for Impact From Fed Rate Increases
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For developing countries, the Federal Reserve’s battle to squelch U.S. inflation with a series of rate increases this year stirs a mix of hope and anxiety

LONDON—For developing countries, the Federal Reserve’s battle to squelch U.S.

inflation withCentral bankers in developing countries have been ratcheting up interest rates for months, seeking to stay ahead of a rise in U.S. rates that could destabilize their economies by pushing up their own cost of debt, weakening their currencies and driving capital out of their markets and into higher-yielding U.S. securities.

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