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21. June 2022

The great trade-flows reshuffle, and the fragmentation of supply chains

After months of inaction over what, in hindsight, now looks like a serious policy mistake, does the phrase – catching a tiger by its tail – aptly describe the state the US central bank and others around the world find themselves in? With inflation at multi-year highs, the Federal Reserve announced a sharper increase in interest rates than what it had earlier outlined and signaled that more rises may be made to cool the runaway surge in prices.