Charting the global economy: Fed, ECB policies may diverge

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Key Points

(Bloomberg) --The Federal Reserve and European Central Bank forged ahead with interest-rate hikes this week, though Washington policymakers signaled theyre in the final round of their inflation fight...

Fed Chair Jerome Powell hinted officials may have room to stand pat and assess the impact of their policy tightening against a backdrop of stress in the banking system...

Besides hikes by the Fed and ECB, Australia signaled further policy tightening ahead after unexpectedly raising interest rates..

BloombergPowell hinted the Feds latest interest-rate increase could be the last one, but stopped short of declaring victory on its battle against rapid price increases..

But he suggested officials may pause their tightening campaign in June to assess how the economy is responding to tighter credit conditions and recent stress in the banking sector...

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