Photograph: Future Image/R Schmiegelt/Rex/ShutterstockPhotograph: Future Image/R Schmiegelt/Rex/ShutterstockGlobal finance leaders should prepare for multiple inflationary shocks, the head of the International Monetary Fund has warned, as fears of a global economic downturn continue to hit markets around the world., said it is becoming harder for central banks to bring down inflation without causing recessions.
Investors fear that central banks risk a “hard landing”, pushing economies into recession, as they raise interest rates to bring inflation down towards target. Wall Street opened lower, a day after its worst selloff in nearly two years, as major retailers reported that rising inflation was hitting consumer spending and eating into their profit margins.US department store chain Kohl’s slashed its profit and sales outlook, echoing Target and Walmart earlier this week.