The Fed has raised interest rates dramatically to almost 3% from effectively zero! This dramatic rise is starting to hurt the economy.
Default rates are starting to rise in sub-prime auto loans and student loans.
Farm bankruptcies are at the highest level since the 1980's.
But the Fed is crushing the global economy too. The US dollar is the most common currency for international loans. So rising US interest rates are causing borrowers around the world to be pounded. Their interest costs are rising. In addition, the strong US dollar means they have to come up with extra money to satisfy their lenders.
This is particularly hitting emerging markets because they have little room for error.
But it is hitting China hard to on top of the beating they are taking in the Trade War.