Global Rate-Hike Endgame Is Now Haunted by Recession Worries
- Central bankers’ zeal on inflation is provoking growth concern
- ‘Policy mistakes’ may transpire, warns GAM’s Hepworth
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Investor fears of mounting economic damage are threatening to overshadow the next round of interest-rate hiking all but promised by central bankers from Washington to Frankfurt.
With Federal Reserve Chair Jerome Powell flagging a potential further half-point in increases and his European Central Bank counterpart Christine Lagarde saying another quarter-point step is “very likely,” a pivotal week in the monetary calendar has left financial markets starting to count the cost that incessant tightening may inflict.