‘Wake up’: markets warn central banks to get a grip on inflation

Policymakers ‘behind the curve’ as calls grow for slow rises in interest rates and end to quantitative easing

• How major economies are dealing with spectre of inflation

Financial markets fear the world’s leading central banks are risking “economic disaster” by misjudging the threat of rising inflation and not turning off the stimulus taps that have flooded the global economy with money.

From the Federal Reserve to the European Central Bank, policymakers are grappling with a surge in prices not seen for decades while trying to keep wobbly economies on course to recovery from the ravages of the coronavirus pandemic.

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