Fed's interest rate hike may put global economy at risk

The U.S. Federal Reserve's recent interest rate hike may lead to dollar outflow from other countries and regions and risks hurting the world economy if that happens too fast, an Indonesian economist has said. The move by the Fed is an aggressive step to rein in the highest inflation in four decades in the United States. However, Fajar Hirawan, an economist with the Center for Strategic and International Studies Indonesia, pointed out that the policy to attract dollars back to the country will hollow its investment in other parts of the globe, which would pose potential risk to the global economy.