World’s finance chiefs to tackle inflation, disease, threat of war | Bloomberg News

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Group of 20 finance chiefs meeting in Indonesia will confront a much-altered global economy menaced by widespread inflation, the threat of war, and a legacy of disease.

The scope of the consumer-price shock afflicting many member countries is unprecedented since the group’s foundation at the end of the last century, and has been stoked by persistent supply worries and soaring energy costs. Related to that last pressure is military tension with Russia that could yet transform into conflict in Ukraine.

What may well become apparent from the meeting is the degree to which many governments are moving on to tackle newer worries than the coronavirus, even as the pandemic continues, albeit with the often less-dangerous Omicron variant. On Wednesday, investors will parse minutes of the Fed officials’ January meeting to gauge central bankers’ appetite for a more aggressive approach to policy normalization. Fed Chair Jerome Powell said last month that they were ready to raise rates in March and didn’t rule out moving at every meeting this year—an outcome that Goldman Sachs, for one, is now expecting.

China’s central bank will release results of its monthly liquidity operation on Tuesday, while the latest inflation data there lands on Wednesday. The main data in the euro region will be industrial production for December on Wednesday, which will point to the health of economic growth in the overall fourth quarter.

 

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