The Federal Reserve and other central banks risk plunge the world economy into recession followed by prolonged stagnation if they keep raising interest rates, a United Nations agency said on Monday.
The warning comes amid growing unease over the haste with which the Fed and its counterparts are raising borrowing costs to contain soaring inflation. India’s central bank said on Friday that the the global economy was facing a third major shock after the Covid-19 pandemic and Russia’s invasion of Ukraine, in the form of aggressive rate hikes by rich country central banks.