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Daniel Moss

The World Economy Catches Some Lucky Breaks

From China’s pivot to interest rates, things haven’t gone terribly this week. That alone is good news.  

Catching a break.

Catching a break.

Photographer: Qilai Shen/Bloomberg

The world economy’s challenges are formidable enough that even the so-so can be cheered. Developments that not so long ago would be seen as the bare minimum required to put a floor under dwindling growth are now regarded as encouraging. Grasping at straws? Thankfully, there may be more to it. 

In recent days, Beijing has recalibrated the Covid-Zero strategy that has been a major brake on commerce, and developed plans to rescue the collapsing property sector. Leaders of the US and China set a more positive tone for relations after meeting in person on Monday. Federal Reserve officials supported expectations that the most powerful central bank will shift to less gargantuan interest-rate hikes, while the dollar has lately retreated from the stratospheric levels that led to strains in global finance.