Britain’s financial meltdown carries a global
warning
https://www.washingtonpost.com/opinions/2022/10/02/britain-economic-meltdown-global-warning/
Central Banks’ Higher Rates, Bond Sales Clash with
Government Needs
https://www.wsj.com/articles/central-banks-higher-rates-bond-sales-clash-with-government-needs-11664703004
https://www.washingtonpost.com/opinions/2022/10/02/britain-economic-meltdown-global-warning/
https://www.wsj.com/articles/central-banks-higher-rates-bond-sales-clash-with-government-needs-11664703004
Global Financial Stability Considerations for Monetary Policy in a High-Inflation Environment
https://www.federalreserve.gov/newsevents/speech/files/brainard20220930a.pdf
Fed Vice Chair Lael Brainard notes:
It will take some time for the global tightening to have its full effect in many sectors. While the effect on financial conditions tends to be immediate or even anticipatory, the effects on activity and price setting in different sectors may occur with a lag, with highly interest-sensitive sectors such as housing adjusting quickly and less rate-sensitive sectors such as consumer spending on services adjusting more slowly.
In addition to the domestic effects from domestic tightening, there are cross-border effects of tightening through both trade and financial channels. U.S. monetary policy tightening reduces U.S. demand for foreign products, thus amplifying the effects of monetary tightening by foreign central banks. The same is true in reverse: Tightening in large jurisdictions abroad amplifies U.S. tightening by damping foreign demand for U.S. products.
Tightening in financial conditions similarly spills over to financial conditions elsewhere, which amplifies the tightening effects. These spillovers across jurisdictions are present for decreases in the size of the central bank balance sheet as well as for increases in the policy rate.
https://www.federalreserve.gov/newsevents/speech/files/brainard20220930a.pdf
Fed Vice Chair Lael Brainard notes:
It will take some time for the global tightening to have its full effect in many sectors. While the effect on financial conditions tends to be immediate or even anticipatory, the effects on activity and price setting in different sectors may occur with a lag, with highly interest-sensitive sectors such as housing adjusting quickly and less rate-sensitive sectors such as consumer spending on services adjusting more slowly.
In addition to the domestic effects from domestic tightening, there are cross-border effects of tightening through both trade and financial channels. U.S. monetary policy tightening reduces U.S. demand for foreign products, thus amplifying the effects of monetary tightening by foreign central banks. The same is true in reverse: Tightening in large jurisdictions abroad amplifies U.S. tightening by damping foreign demand for U.S. products.
Tightening in financial conditions similarly spills over to financial conditions elsewhere, which amplifies the tightening effects. These spillovers across jurisdictions are present for decreases in the size of the central bank balance sheet as well as for increases in the policy rate.
Is the Fed Braking Too Hard?
https://www.nytimes.com/2022/09/29/opinion/columnists/federal-reserve-inflation.html
https://www.nytimes.com/2022/09/29/opinion/columnists/federal-reserve-inflation.html