Stagflation danger stalks global economy beset by war fallout

In the United States, Fed chairman Jerome Powell said he would keep raising rates until there was “clear and convincing” evidence that inflation was in retreat.

LONDON: The world economy is increasingly succumbing to the threat of stagflation reminiscent of its 1970s ordeal, a mounting headache for global finance chiefs already navigating the fallout from the war in Ukraine.

With China’s economy slowing sharply, and the Federal Reserve’s (Fed) stepped-up vow to crush inflation raising worries of a widespread hard landing, warnings of the consequent dangers are intensifying.