World’s Central Banks Unleash Most Hawkish Campaign Since 1980s

The world’s central bankers are unleashing what may prove to be the most aggressive tightening of monetary policy since the 1980s, risking recessions and roiling financial markets as they rush to tackle the surge in inflation they didn’t see coming.

The week began with a sudden shift on Wall Street to price in a 75 basis point interest-rate increase by the Federal Reserve. The US central bank delivered that on Wednesday -- the biggest move since 1994 -- as Chairman Jerome Powell declared himself “strongly committed to bringing inflation back down.”

Switzerland unexpectedly raised rates the next day, while the Bank of England hiked shortly after by 25 basis points for a fifth time and signaled it will soon double the pace.