“It’s unsustainably hot,” Jerome H. Powell, the Fed chair, said of the job market during an event on April 21. The central bank is trying to tame inflation by lifting interest rates in a bid to make money more expensive to borrow, which can slow spending and cool off economic conditions. The United States could also face consequences, but is comparatively insulated from the Russian and Ukrainian economies. “Europe was doing well and I was very optimistic prior to the war,” said Gian Maria Milesi-Ferretti, an economist at the Brookings Institution who has studied the recoveries in the United States and Europe. “But now the war shock is completely asymmetric between the U.S. and Europe.”

Source: International New York Times April 25, 2022 09:33 UTC