Asia Faces Economic Déjà Vu: Echoes of 1997-98 Crisis

As US inflation remains high and the Federal Reserve maintains a "higher for longer" stance on interest rates, Asian economies are feeling the strain reminiscent of the 1997-98 financial crisis. The unexpected persistence of high US rates is causing capital flight from Asia, weakening currencies, and complicating monetary policies. This dynamic is forcing Asian central banks to reconsider rate cuts to avoid further economic instability, while the strong US dollar exacerbates the challenges.