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Turkey’s currency crisis has lurched on to the global stage, denting European and US stocks as fears of contagion rise.
The country’s economy was already in trouble, but the lira’s selloff was heavily compounded by Donald Trump’s announcement that he was doubling tariffs on Turkish steel and aluminum.
The boomerang market effect showed just how interconnected the global economy and markets remain, making it difficult for Trump to pursue an isolationist stance, and for the Fed to continue raising interest rates.
Turkey’s currency crisis spilled loudly on to the global stage Friday as other markets, including US stocks, took at hit from concern about financial contagion to other countries and banks.
Turkey’s troubles, compounded by a new round of US sanctions, are unlikely to cause any kind of permanent hit to US markets or its economy, but it does offer two cautionary tales, one for President Donald Trump and the other for Federal Reserve Chairman Jerome Powell.See the rest of the story at Business Insider
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