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UN Pushes For A Monetary Policy "Pivot"

GLOBAL
The UN agency UNCTAD is pushing for a global monetary "pivot", warning of a policy-induced global recession and looking for the Fed and other central banks to stop hiking rates: "This year’s interest rate hikes in the United States are set to cut an estimated $360 billion of future income for developing countries (excluding China) and signal even more trouble ahead, the report warns."
  • The WSJ interviewed the lead author: "UNCTAD said rather than increase rates, which will do little to ease shortages of energy and food, policy makers should focus on measures that target price spikes directly, including price caps funded by one-off taxes on the unusually large profits being made by many energy companies. "Do you try to solve a supply-side problem with a demand-side solution?" asked Richard Kozul-Wright, head of the team in charge of the report, in an interview. "We think that's a very dangerous approach." "
  • The global impact of Fed hikes is becoming an increasingly visible theme, both outside the US with rising financial market stress, and within it, with numerous FOMC speakers addressing the potential spillovers from Fed policy to the global economy and vice-versa.


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