Goodbye easy money as hawkish central banks speed up rate hikes

Rates are rising because policy makers judge that the global inflation shock now poses a bigger threat than further damage to growth from Covid-19

The end of easy money is upon us.
 

Two years after the pandemic sent the global economy into a deep but short recession, central bankers are withdrawing their emergency support -- and they’re moving faster than they or most investors had foreseen.

The U.S. Federal Reserve is preparing to raise interest rates in March, and last Friday’s jobs report fueled speculation it may need to move aggressively. The Bank of England just delivered back-to-back hikes, and some of its officials wanted to act even more forcefully. The Bank of Canada is set for liftoff next month. Even the European Central