Economics
Central Banks’ Window to Restock Ammo Is Closing
- Uncertain outlook will make it harder to tighten policy
- Fed has already signaled a pause in its rate hiking cycle
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The window to restock monetary ammunition is closing for the world’s major central banks.
With economic growth slowing and inflation lagging in big economies like the U.S. and euro area, a push to escape crisis-era policy settings that include rock bottom interest rates appears at risk of stalling. That will leave less firepower to fight off the next economic downdraft, threatening a prolonged downturn.