Market analysts predict that the US dollar will fall by as much as 2.6% this morning following fears that global warming will cause more extreme weather events.
Ahead of the expected drop in the dollar, Bloomberg reported on Tuesday that the Federal Reserve was considering cutting interest rates and raising inflation targets, adding that the decision is likely to be announced soon.
In its most recent weekly report, the Fed’s committee of economists warned that its actions may lead to a global cooling of economic activity.
“Our recent research indicates that the likelihood of a global warming cooling trend due to the effects of global warming may be higher than previously thought,” the committee wrote in a report on Tuesday.
The Fed is expected to hold its next meeting on March 16, and on Monday, a report by the International Monetary Fund said it expects the global economy to contract by 0.6 per cent in 2017.
While the US is not expected to experience an outright collapse, the risk of a slowdown is real.
On Wednesday, the Dow Jones Industrial Average was expected to close down more than 200 points, falling as much $1.35 to 27,737.