The Fed's wait and see stance on inflation is keeping global economies on their toes.

Live from the UK, this is the Marketplace Morning Report from the BBC World Service. I'm Leanna Byrne.

Now, the Federal Reserve's latest meeting minutes suggests they want to see more evidence that inflation is cooling

before even thinking about cutting interest rates.

That's not just an American story.

When borrowing costs stay high in the US, it can ripple around the globe.

Simon French, chief economist and head of research at Investment Bank, Panmier-Liberium, will explain this for us.

Hello, Simon.

Hello, Simon.

Simon, just explained to us how inflation in the US could actually not just be an issue for the US.

It could be a global issue.

The Trump administration and strong demand together leading to a, what looks increasingly like a secondary pickup in US prices.

Now, that may seem quite remote to the listeners in other parts of the world, but the US

central bank, the Federal Reserve, have to respond to domestic economic conditions.

And if they choose a path for interest rates that is appropriate for the US

economy, it will have inevitably big spillovers of the cost of borrowing, the cost of the

rewards to saving for people all over the world. Are there countries or regions that are more

vulnerable to this? Well, starting in Europe, I think the demand backdrop, the growth backdrop in European

countries, courtesy of the events in Ukraine leading to a big increase in energy costs, means

that those economies are growing in a much slower pace. So that would be quite a negative

spillover. Similarly, you know, for emerging

markets, the impact of the Federal Reserve keeping interest rates relatively high is a strong

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