While the world heads into an economic slowdown and institutions pile into the US dollar as a safe haven asset, this constant flow of demand adds to US dollar’s strength. Combine that with the Federal Reserve raising rates and it gives the US dollar the power to now maintain its relative strength against other currencies, which has been putting pressure on other central banks to raise rates too, otherwise, they risk a currency collapse/devaluation versus the US dollar. As a result of this global interest rate raising battle, you’ll find over 80% of global central banks now raising their rates into a recession; all in hopes of softening inflation and maintaining their relative value. However, while inflation gets less bad, keep in mind this is the first time since the 70s that the world as a whole is facing higher inflation. So even if rates don’t go higher, as long as they remain elevated, they can potentially worsen the global growth slowdown and take us from an inflation recession to a profit recession.