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Central Banks Bet Economies Tolerate Omicron, Not Inflation

  • This week, Fed, ECB and BoE all sound less worried about Covid
  • They see less damage to demand; focus on supply risk to prices
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Leading central banks made a big call this week, deciding that the coronavirus is no longer calling the shots in their economies, and inflation is now the bigger threat. 

For almost two years, the main challenge for monetary authorities was to anticipate where the next pandemic blow might fall -- and cushion its impact on economic growth and employment.