The most aggressive monetary tightening in decades is already hurting America’s economy, and the world’s. There’s more pain to come.
Photographer: Graeme Sloan/Bloomberg
The Big Take
From Bad to Worse? Next Year’s Economic Risks Are Already Here
Cheap money, a booming China and decades of great-power peace are all gone. Next year may be when their absence really bites.
It’s been a miserable year for the global economy. But things can always get worse.
History says the Federal Reserve’s high-speed interest-rate hikes may well tip the US into recession in 2023. Few will be surprised if spiraling natural-gas prices do the same for Europe. The double whammy of Covid Zero and a property slump threatens to bring China’s economy to a near standstill.