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Daniel Moss

Memo to the Fed: Hurry Up and Hike So We Can Slow Down

New Zealand and South Korea moved early and aggressively on rates. They are starting to acknowledge the costs to the economy.

This inflation thing is exhausting.

This inflation thing is exhausting.

Photographer: Steph Chambers/Getty Images

While interest-rate hawks have owned the first half of 2022, the future will be more contested. Two of the earliest rate hikers are already preparing for slower growth and, in one instance, acknowledging the prospect of eventual cuts in borrowing costs.

The tussle against inflation, though painful, could be shorter than expected. That's one takeaway from the Reserve Bank of New Zealand and Bank of Korea this week, even as both pressed ahead with rate increases and all but promised more to come. These aren’t merely two peripheral institutions: Their challenges are microcosms of those the Federal Reserve will face as it seeks to push inflation back to comfortable levels while global growth loses altitude.