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Good morning. Central banks finding recession more palatable, politics Italian style — lots of alliances, wheat prices jump on Odesa attack, and monkeypox poses fresh global test. Here’s what people are talking about.
The Federal Reserve will probably have to inflict much more pain on the economy to get inflation under control. Chair Jerome Powell and his colleagues are expected to approve another 75 basis-point interest-rate hike this week and signal their intend to move higher in the months ahead. Growth is already slowing in response to the Fed’s repeated rate increases. But with inflation proving persistent at a four-decade high, a growing number of analysts say it will take a recession — and markedly higher joblessness — to ease price pressures significantly. The European Central Bank may also have to accept a moderate recession to stem price pressures if it sees signals that inflation expectations are rising, Governing Council member Robert Holzmann said.