{"id":20997,"date":"2022-05-20T14:59:18","date_gmt":"2022-05-20T21:59:18","guid":{"rendered":"https:\/\/setapartbytruth.org\/wordpress-watchman\/?p=20997"},"modified":"2022-05-20T13:45:45","modified_gmt":"2022-05-20T20:45:45","slug":"global-economy-on-the-brink-of-recession-as-investors-are-now-less-tolerant-of-monetary-policy-tightening","status":"publish","type":"post","link":"https:\/\/setapartbytruth.org\/wordpress-watchman\/global-economy-on-the-brink-of-recession-as-investors-are-now-less-tolerant-of-monetary-policy-tightening\/","title":{"rendered":"Global economy on the brink of recession as investors are now less tolerant of monetary policy tightening"},"content":{"rendered":"

\"\"<\/p>\n

\"\"<\/p>\n

Strange Sounds – May 20, 2022<\/p>\n

The global economy is \u201cteetering on the brink of recession\u201d as the war in Ukraine, Covid-19 lock downs in China and a hawkish US Federal Reserve weigh on activity worldwide, the Institute of International Finance said in a report.<\/p>\n

In its latest forecast, the IIF estimates global gross domestic product to grow 2.2 per cent this year, with activities slowing to 0.5 per cent in the fourth quarter. The Euro area as well as emerging markets, excluding China, are anticipated to go into a recession by the end of the year.<\/strong><\/p>\n

\u201cSince the statistical carryover from 2021 is 2.3 per cent, this is a de facto flatlining of global GDP,<\/em><\/strong>\u201d the report<\/a> said.<\/p>\n

The IIF\u2019s estimates are below the latest prediction from the International Monetary Fund, which has also lowered its growth forecast this year, due to the Ukraine war and inflation stoked by soaring commodity prices.<\/p>\n

The IMF projects global growth at 3.6 per cent this year and next, down 0.8 and 0.2 percentage points from its January forecast, respectively.<\/p>\n

With the possibility of a recession, market regulators must approach policy normalisation more cautiously, the IIF said.<\/p>\n

\u201cIn the past, rising uncertainty and mounting recession risk have had important effects on investor psychology, making markets less tolerant of monetary policy tightening that is seen as no longer warranted,<\/em><\/strong>\u201d the institute said.<\/p>\n

It cited the Fed\u2019s last rate hiking cycle in December 2018, which it was forced to end abruptly after the S&P 500 index fell sharply. Markets judged that hike to be \u201cunwarranted\u201d, given the escalating trade war between the US and China at the time, the report said.<\/p>\n

https:\/\/strangesounds.org<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Strange Sounds – May 20, 2022 The global economy is \u201cteetering on the brink of recession\u201d as the war in Ukraine, Covid-19 lock downs in China and a hawkish US Federal Reserve weigh on activity worldwide, the Institute of International Finance said in a report. In its latest forecast, the IIF estimates global gross domestic … Continue reading Global economy on the brink of recession as investors are now less tolerant of monetary policy tightening<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[18],"tags":[12,149,16708,1448,8363,13133,8362,152,16709,16707],"class_list":["post-20997","post","type-post","status-publish","format-standard","hentry","category-warning","tag-china","tag-economy","tag-euroglobal-gdp","tag-global-economy","tag-iif","tag-inflation","tag-institute-of-international-finance","tag-recession","tag-ukraine-war","tag-us-federal-reserve"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8fAkI-5sF","_links":{"self":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/20997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/comments?post=20997"}],"version-history":[{"count":1,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/20997\/revisions"}],"predecessor-version":[{"id":20999,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/20997\/revisions\/20999"}],"wp:attachment":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/media?parent=20997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/categories?post=20997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/tags?post=20997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}