Do we need a recession to control inflation?

Inflation has risen faster and higher than expected in the US and most developed countries. Central banks are increasingly hawkish, and markets are pricing in higher interest rates. But anticipated rises still leave rates well below expected inflation. Given the inflationary environment and the fact that unemployment is low (and continuing to fall) Steven Bell – our Global Chief Economist - argues that policy is far too loose. If central banks delay taking firm action now, the risk is that they’ll have to overdo tightening down the road. Could this plunge the world into recession? Join us as Steven explores this conundrum and the implication for equities and bonds over the rest of 2022.