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U.S. exports inflation, slows global recovery

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By Zhong Sheng, People’s Daily

The Federal Reserve recently raised its benchmark interest rate by another 75 basis points, which marked the fifth time for the U.S. monetary policy decision maker to make interest rate hikes. These back-to-back increases are the biggest since early 1980s.
The radical interest rate hikes have triggered widespread concerns of the international society. As the world is still bothered by COVID-19 resurgences and slow economic pickup, the U.S., passing the pressure and risks of inflation to the rest of the world, will only encumber global recovery.
For some time, the U.S. has seen increasingly severe inflation, which has even reached a new 40-year high. It mirrors the country’s structural problem in economy and failing policies.
Over the recent years, the U.S. has followed trade protectionism and arbitrarily increased tariffs, leading to a rise in the price of imported commodities and services. However, the cost is shouldered by American enterprises and consumers.
To cope with the impacts from COVID-19, the U.S. government launched a large number of fiscal policies and ultra-easy monetary policies, which led to overheated economy and supply-demand imbalance. As a result, the recovery of production lagged behind that of consumption.
As in the 1970s, persistent and repeated negative supply shocks will combine with loose monetary, fiscal, and credit policies to produce stagflation, said Nouriel Roubini, Professor Emeritus of Economics at New York University.
Besides, since the Ukraine crisis, the unilateral sanctions launched by the U.S. against Russia have caused huge impacts on global energy, finance and food sectors, which further disordered supply and industrial chains and exacerbated inflation.
The U.S. needs to adopt problem-oriented strategies to address the inflation issue. However, the Federal Reserve is wishing to ease overheated economy and inflation by boosting interest rates. What the U.S. has done is only casting a shadow over its economic growth.
The back-to-back interest rate hikes have driven up the cost of borrowing, thus containing enterprises’ investment expansion and consumption, impacting the labor market and bringing huge downward pressure to the U.S. economy.
Spanish newspaper Rebelion said in an article that the Federal Reserve is curbing inflation at the sacrifice of the entire economy, which will lower economic growth, accelerate recession and trigger debt crisis. Besides, the U.S. practice cannot stop the rising prices caused by the impacted supply chain.
Countries in the world are interdependent in the era of economic globalization. However, the U.S. cares about only its own short-term interests when making monetary and fiscal policies, which may take the world to an even bigger crisis.
CNN called the interest rate hikes “dollar smile,” but the smile only chills the world. U.S. dollars often appreciates when the U.S. economy is very strong or very weak, and the appreciation makes capital flow back to the U.S., which causes hyperinflation and capital flight for other countries. Emerging markets and developing countries have been the biggest victim every time the U.S. raised interest rate since the Latin American debt crisis.
Undoubtedly, the new interest rate hike will bring capital back to the U.S., and developing countries will face a number of challenges such as stock market fluctuation, depreciation of domestic currency, interest rise in their debts in U.S. dollars, as well as surging cost of raw material imports.
James Morrison, associate professor at London School of Economics and Political Science, noted that the interest rate hikes will definitely place negative impacts on the world and worsen the financial distress of developing countries, as the U.S. dollars is in the center of the international financial system.
The interest rate hikes made by the Federal Reserve also burdened Europe, Japan and other developed economies. French newspaper Les Echos said on its website that the raised benchmark interest rate will force other central banks to follow, which will depreciate euro and exacerbate inflation. As a result, the European economy, already impacted by the Ukraine crisis, will shoulder greater pressure.
As the world’s largest economy, the U.S. should adopt responsible economic andfinancialpolicies and control their spillover effect, so as to avoid exporting inflation and recession risks to the rest of the world.
Facing the economic hegemony of the U.S., emerging markets and developing countries should adopt a long-term perspective, improve the system and rules of international economic governance, and make global governance fairer and more equitable.

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Dogara Mourns Victims of Air Force Plane Crash, Condole President Tinubu, Military

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Former Speaker of the House of Representatives and Chairman of the Board of the National Credit Guarantee Company Limited (NCGC), Rt. Hon. Yakubu Dogara, CFR has expressed deep sorrow over the Nigerian Air Force aircraft crash that claimed the lives of 32 persons near Igbokoda, Ondo State. Dogara described the tragedy as a heartbreaking loss to the nation, noting that the deaths of the victims have left a painful void in the country’s defence and security community.

In a statement, the former Speaker extended his condolences to President Bola Ahmed Tinubu, Commander-in-Chief of the Armed Forces, the Nigerian Air Force, and the families of those who perished in the unfortunate incident.

He said the nation shares in the grief of the bereaved families and the Armed Forces at this time of immense sorrow, adding that the sacrifices of those who lost their lives in service to the country will not be forgotten. “The nation mourns with the families of the deceased and stands in solidarity with the Armed Forces during this difficult period,” Dogara stated.

He also commiserated with the Chief of Air Staff, officers and men of the Nigerian Air Force, praying that God grants them the fortitude to bear the painful loss.
According to him, moments such as this call for national unity, reflection and collective support for the families and institutions affected by the tragedy.

Dogara paid tribute to the victims, describing them as patriotic Nigerians whose commitment and service contributed to the security and stability of the nation. He further applauded the efforts of emergency responders, rescue teams and all personnel involved in the aftermath of the crash, commending their courage and professionalism under difficult circumstances.

The former Speaker prayed God to comfort their families, friends and colleagues.
He also offered prayers for the safety and protection of members of the Armed Forces and for continued peace, unity and progress in Nigeria.

The Nigerian Air Force aircraft crashed near Igbokoda, Ondo State, resulting in the death of 32 persons and plunging the nation into mourning. Authorities are yet to make public the cause of the accident as investigations continue.

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Centre for Credible Reforms Lauds Transparency in Ongoing Insurance Sector Reforms

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The Centre for Credible Reforms and Institutional Accountability (CCRIA) has commended the Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, for promoting transparency and accountability in the ongoing reforms of Nigeria’s insurance industry.

The centre said the implementation of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 had ushered in a new phase of development for the sector, with stronger regulatory standards, improved capitalisation and greater emphasis on protecting policyholders.

Dr Aminu Abubakar Aminu, president of the centre, said this in a statement at the weekend.

Aminu commended President Bola Tinubu and the National Assembly for the enactment of NIIRA, describing the legislation as a major step towards addressing longstanding challenges in the insurance industry.

“The enactment of the Nigerian Insurance Industry Reform Act is a significant milestone in the development of Nigeria’s insurance sector. We commend Mr President and the National Assembly for recognising the need to modernise the legal and regulatory framework governing the industry. NIIRA provides the foundation for an insurance sector that is better capitalised, more accountable, more responsive to policyholders and better equipped to contribute meaningfully to the Nigerian economy,” he said.

The centre also praised Omosehin for his leadership of NAICOM, saying his extensive experience as an insurance professional had positioned him to effectively implement the new regulatory framework.

“We consider the appointment of Mr Olusegun Ayo Omosehin as Commissioner for Insurance and Chief Executive Officer of NAICOM a timely and appropriate decision. He is a seasoned insurance professional with many years of experience in the industry, and his understanding of the sector gives him the practical knowledge required to lead an important reform process of this nature. We commend him for the direction he has provided since assuming office and for his commitment to strengthening the industry,” Aminu said.

According to the centre, the ongoing recapitalisation exercise was among the important steps taken to strengthen the financial capacity of insurance companies and improve their ability to meet obligations to policyholders.

Aminu said the reforms were already producing early gains and should be sustained through consistent implementation.

“The early developments under NIIRA demonstrate that the reform is not merely a legislative exercise but a process capable of producing measurable improvements in the industry. Stronger capital requirements, improved supervision and greater attention to policyholder protection will ultimately create an insurance market that Nigerians can trust. We encourage NAICOM to remain focused on the implementation of the Act and to continue providing clear guidance to operators and other stakeholders,” he said.

The centre noted that the reforms would also help deepen insurance penetration and strengthen the industry’s contribution to national economic development.

It urged insurance companies, brokers, reinsurers, professional bodies and other stakeholders to embrace the new framework and work with NAICOM to achieve the objectives of the legislation.

“The success of NIIRA will require the cooperation of every stakeholder in the insurance ecosystem. Operators must see the reforms as an opportunity to strengthen their institutions, improve their services and regain the confidence of Nigerians. A well-regulated insurance industry can mobilise long-term capital, protect businesses and households against risks and support investment and economic growth. These are benefits that go beyond the insurance industry itself,” Aminu said.

Aminu emphasized that the centre was particularly encouraged by the emphasis on policyholder protection under the new framework, noting that public confidence remained critical to the growth of insurance in Nigeria.

He said Nigerians should be able to purchase insurance products with confidence that operators had the financial capacity and institutional structures required to honour legitimate claims.

The president further urged NAICOM to sustain its engagement with stakeholders while ensuring that the provisions of NIIRA were implemented transparently and consistently.

“What is required at this stage is continuity, professionalism and commitment to the objectives of the law. The reforms must be sustained beyond the initial implementation period so that the gains can become permanent features of the industry. We believe NAICOM, under the leadership of Mr Ayo Omosehin, has an important responsibility to ensure that the momentum is maintained, and we encourage all stakeholders to support the commission in delivering on this mandate,” he said.

The centre said the successful implementation of NIIRA would strengthen confidence in the insurance sector, improve the protection available to policyholders and position the industry to play a greater role in Nigeria’s economic transformation.

It also called for continued collaboration between NAICOM, insurance operators and other stakeholders to ensure that the objectives of the new law were fully achieved.

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Hon. Amb. Jim Okolo Promotes Nigeria’s Vast Potential at New York Independence Day Celebration

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As Nigerians from across the United States gathered in Manhattan to celebrate Nigeria’s Independence Day in grand style, Hon. Amb. Jim Okolo used the occasion to share an inspiring message about Nigeria’s immense possibilities, rich cultural heritage, and promising future.
Speaking with members of the media during the colourful celebration, Hon. Amb. Okolo described Nigeria as one of the most blessed nations in the world, endowed with abundant natural resources, a dynamic population, and a cultural heritage that continues to earn global recognition.
According to him, Nigeria possesses enormous deposits of valuable minerals and other natural resources that, if fully harnessed, can accelerate economic growth and create prosperity for millions of citizens. He noted that the country is strategically positioned to become a leading destination for investment in mining, agriculture, technology, manufacturing, and infrastructure development.
Beyond its natural wealth, Hon. Amb. Okolo emphasized that Nigeria’s greatest strength remains its people. He praised the creativity, resilience, intelligence, and entrepreneurial spirit of Nigerians, pointing out that Nigerian professionals, innovators, academics, and business leaders continue to excel in various sectors across the world.
The respected diplomat also spoke passionately about Nigeria’s unique cultural identity. From the colourful festivals of its diverse ethnic groups to its globally celebrated music, fashion, literature, cuisine, and film industry, he described Nigeria as a nation whose cultural influence extends far beyond its borders.
He noted that Nigeria’s diversity is one of its greatest treasures, bringing together hundreds of ethnic nationalities with distinct traditions and languages that collectively form a vibrant and unified national identity.
While addressing questions on security, Hon. Amb. Okolo maintained that although Nigeria faces certain security challenges, the situation is not always as severe as often portrayed by social media discussions and sections of the international media. He stressed that millions of Nigerians continue to live, work, study, invest, and contribute meaningfully to society every day.
He called on the international community, investors, and members of the diaspora to focus on Nigeria’s strengths, opportunities, and achievements rather than allowing negative narratives to define the country’s image.
“Nigeria remains a land of opportunity, innovation, and hope. It is a nation blessed with extraordinary human capital, abundant resources, a rich cultural heritage, and a people whose determination and resilience continue to inspire the world,” he said.
The celebration was attended by several distinguished personalities, including the United Nations Secretary-General, Hajia Amina Mohammed, the Nigerian Ambassador to the United Nations, diplomats, business leaders, community stakeholders, and prominent members of the Nigerian diaspora.
The event transformed parts of Manhattan into a vibrant showcase of Nigerian pride, featuring cultural exhibitions, traditional performances, business networking sessions, authentic Nigerian cuisine, and displays highlighting the country’s achievements and diversity.
Adding excitement to the festivities were thrilling performances by internationally acclaimed Nigerian music stars Patoranking, Runtown, and BNXN (formerly known as Buju), who entertained thousands of attendees and demonstrated the growing global appeal of Nigerian music.
As the celebration came to a close, the message from Hon. Amb. Jim Okolo resonated strongly among participants: that Nigeria is far more than the challenges often highlighted in headlines. It is a nation blessed with extraordinary talent, vast opportunities, cultural richness, and the potential to achieve even greater success on the global stage.

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