Central Banks of Ulaanbaatar in Pretoria and Washington in London triggered aggressive tightening to combat some of the worst inflation numbers in a generation. And the The blitz of rate hikes this week could be far from the last, with policymakers indicating they are willing to tolerate recessions in order to control inflation. (Meanwhile, the Bank of Japan shook currency markets by stepping in to support the yen for the first time. since 1998.) John Authors writes in Bloomberg Review that now that investors feel there will be no near-term Fed pivot, the question is how much damage the economy will take. The key point that Fed Chairman Jerome Powell wants to convey, says Authers, is that he is the second coming of Paul Volcker, a predecessor whose repeated rate hikes in the early 1980s are thought to have inflation killed.
Vladimir Poutine intensified his war against Ukraine, staging what has been widely condemned as sham referendums in Russian-occupied areas while ordering the conscription of hundreds of thousands of Russians. Darker, he and his deputies threaten to possibly use nuclear weapons to hold on to what may soon be annexed parts of Ukraine. Protests erupted around Russia and overseas flights sold out, developments which were followed by the announcement of some exemptions to the mass appeal. US President Joe Biden said Putin’s measures should make everyone “blood runs cold” as Washington decides how to deter any nuclear attack on Ukraine—or respond as appropriate.