‘Seek-and-Destroy’ Markets Pile Pressure on Global Central Banks
- Economists debate how policy makers will handle dual threats
- Markets rushed to price in a reversal in monetary tightening
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Central bank interest-rate hikes really started hitting home this week.
After a prolonged debate about why the most aggressive monetary tightening in decades had produced so little sign of financial strain, turmoil erupted. Treasuries volatility exploded to levels last seen when the collapse of Lehman Brothers set off a global credit crunch.