During a Senate Finance Committee hearing, Yellen said the US was dealing with “a level of inflationary unacceptable” but she hopes the price hike will cool down soon.
Yellen repeated her view that inflation is driven by rising food and energy prices due to Russia’s military campaign in Ukraine, a change in pandemic-era goods purchases, and the emergence of climate change. novelty and continuous supply chain disruptions.
Meanwhile, the World Bank (WB) on June 7 downgraded its global growth forecast and warned that many countries could fall into recession when the world economy falls into a similar period of stagnant inflation. since the 1970s.
In its Global Economic Outlook report, the World Bank (WB) revised down its global growth forecast for 2022 to 2.9% from 5.7% in 2021, 1.2 points lower. percent compared with the 4.1 percent forecast in January. The report said economic growth is expected to hover around that level between 2023 and 2024 while inflation remains above target in In most economies, signs point to stagnant inflation.
According to CNBC, World Bank President David Malpass said: “Military campaign in Ukraine, blockade in China, supply chain disruptions and the risk of stalling inflation are weighing on growth. economy. For many countries, recession is inevitable.”
Meanwhile, economic growth in emerging markets and developing economies is forecast to slow to 3.4% in 2022 from 6.6% in 2021.
As inflation continues to escalate in both developed and developing economies, central banks must tighten monetary policy and raise interest rates to rein in soaring prices.
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