Four leading banks around the world have warned that barriers need to be longer than expected and that they are looking at non-compliant signs that lead to higher inflation and increased tariffs.
Jay Powell, chairman of the U.S. Federal Reserve, said it was “disappointing” that trade barriers are reversing global economic growth and have helped keep inflation growing as it grows.
“The combination of high demand for goods and services has meant that inflation is on the rise,” Powell said in a statement to European Central Bank President Christine Lagarde, Bank of England Ambassador Andrew Bailey and Bank of Japan Haruhiko Kuroda on Wednesday. “We hope this will continue to do so in the coming months before we address the crisis.”
His warnings echoed similar sentiments from Lagarde, Bailey and Kuroda, who also spoke of the uncertainty that still affects economic sentiment due to the disruption of retailers and other widespread Delta.
Lagarde said barriers “appear to be increasing in some areas” such as container shippers and semester conductors. He added: “These vessels will take a long time to complete with the question we are looking at carefully and this is on our screen.”
The UK oil shortage, which has left some people unable to replenish their vehicles with fuel, is showing a decline, Bailey said, adding that the end of Britain’s plan this week could help reduce labor markets. But he said the UK economy would not return to the plague until early next year – “a few months later” than he had expected.
As the global economy expands as a result of the coronavirus epidemic, the economic downturn has risen faster than many banks expect, driven by rising electricity prices, demand for recovery, delays in shipments and shortages.
read more Pano.