WASHINGTON — The Federal Reserve’s bid to calm inflation by raising interest rates and withdrawing emergency stimulus programs is gearing up just as the global economy is displaying worrisome signs of weakness, aggravated by the war in Ukraine and COVID’s continuing hold on industrial supply chains.
The risk, some economists said, is that the Fed and other central banks that are implementing similar anti-inflation policies may adjust too slowly to a complex and fast-changing global landscape.
While the Fed is just starting to overhaul the loose monetary stance it adopted during the pandemic, global financial conditions already are tighter than at any time since the 2008 financial crisis, according to a Goldman Sachs index.
Faced with tighter money, war in Europe and fresh supply chain troubles in Asia, global growth may buckle. The Institute of International Finance, an industry group, said Thursday that it expects global output…