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Martin Wolf writes: The Fed risks reacting too slowly if inflation keeps rising

And that will be bad news for the rest of the world economy as it recovers from the pandemic

©The Financial Times Limited 2020 Jun 9, 2021 / 11:39 AM IST
All Rights Reserved. FT and Financial Times are trademarks of the Financial Times Limited Not to be redistributed, copied or modified in any way.
Martin Wolf writes: The Fed risks reacting too slowly if inflation keeps rising

(Representational image)

The world economy is enjoying a vigorous, but divergent, recovery. This is what the World Bank’s June Global Economic Prospects is telling us. The main reason for the recovery is the successes of the vaccine programme. The main reason for the divergence is the limitations of the vaccine programme. Some parts of the world economy may become too hot, while others are too cold. So, stay alert. This time is indeed different: the recession was caused not by the need...

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