The Global Real Yield Tantrum of 2022 Is Here
This week we got a glimpse of what was once commonplace: a world where investors in developed markets could actually earn money from bonds. Brace for more shocks ahead.
ECB President Christine Lagarde added to the “general concern” about inflation this week.
Photographer: Thomas Lohnes/Getty Images EuropeThis week marked a dramatic shift in perceptions.
Central bankers are no longer patient when it comes to inflation. Federal Reserve Chair Jerome Powell made that clear at last week's meeting when he basically confirmed a March interest-rate hike. European Central Bank President Christine Lagarde on Thursday refused to repeat previously-made comments that a rate hike this year was "very unlikely," and instead indicated there was "general concern" among policymakers about inflation and that she'd be open to raising rates this year. Then, of course, there was the Bank of England, where policymakers seriously considered raising rates by 50 basis points in the latest meeting.