The Federal Reserve’s focus on curbing inflation is hurting other economies around the world.

The almighty dollar continues to crush everything around, causing problems for the economy almost everywhere except the United States. This means that, at least for the moment, this is not America’s problem, and the dollar’s historical rise driven by the central bank is unlikely to stop anytime soon.

Photo illustration: Justin Metz

By some measures, the US currency is already stronger than ever, having eclipsed the highs of the Covid-19 pandemic in early 2020. The pain it causes is reminiscent of the mid-1980s, when currency chaos forced the world’s most important financial officials to come together and force a solution on the markets. However, it is now every country for itself as the US administration abandons the idea of ​​coordinated foreign exchange interventions.

With the risk of economic damage spreading, officials from Tokyo to Santiago have been forced to bail out to support their currencies through impromptu decisions such as selling dollars directly on the market. But Federal Reserve Chairman Jerome Powell is fully focused on fighting inflation at home, doubling down on interest rate hike plans that have reset the dollar rally. And US Treasury Secretary Janet Yellen said she believes financial markets are working properly.