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2022-05-01

End of Easy Money Brings a $410 Billion Global Financial Shock

Inflation is pushing central banks to shrink their balance sheets as they hike interest rates, adding a new risk for the world economy.

Their new policy, known as quantitative tightening — the opposite of the quantitative easing that central banks turned to during the pandemic and the Great Recession — will likely send borrowing costs higher and dry up liquidity. 

Already, rising bond yields, falling share prices and the stronger U.S. dollar are tightening financial conditions — even before the Fed’s push to raise interest rates gets into full swing. 

Bloomberg 1 May 2020

https://www.bloomberg.com/news/articles/2022-05-01/global-economy-faces-410b-financial-shock-as-central-banks-pull-back


The U.S.’s big economic red alert this week was the surprise GDP contraction

The World’s Economic Outlook Turns Grim

Bloomberg 1 May 2020

https://www.bloomberg.com/opinion/articles/2022-05-01/shrinking-u-s-gdp-recession-risk-in-germany-grim-economic-outlooks-l2n8qxa1




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