How US Fed is unintentionally squeezing developing economies
(WorldNews Politics)

WASHINGTON (AP) - President Recep Tayyip Erdogan is blaming the United States for Turkey`s financial crisis, ignoring homegrown problems like high debts, raging inflation and his own erratic policies. Yet one of the threats facing Turkey and other emerging-market countries really is made-in-America: By ratcheting up U.S. interest rates, the Federal Reserve has - unintentionally - led investors to pull money out of emerging markets like Turkey, strengthened the dollar`s value and made it harder for foreign companies to repay their dollar-denominated debts. The resulting flight of capital into safer and higher-yielding U.S. investments has sent many emerging-market currencies tumbling. The...