Economics
Fed and ECB’s Failure to Spot Inflation Is Proving Costly Now
- Forecasting failures at Fed and peers seen as credibility hit
- Fallout includes faster rate hikes and greater recession risk
Customers shop at a farmers market in the Fort Greene neighborhood of Brooklyn, New York.
Photographer: Allison Hess/BloombergThis article is for subscribers only.
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Global central banks made one of their biggest forecasting failures on record when they woefully underestimated the magnitude and duration of the worst inflation surge in decades.