Central banks feel guilty. Will they turn too hawkish this time?

It is clear that central banks will need to respond to the current spike in energy prices. How they respond will be decisive in determining whether the global economy enters a recession or avoids one. It is clear that central banks will need to respond to the current spike in energy prices. How they respond will be decisive… It is clear that central banks will need to respond to the current spike in energy prices. How they respond will be decisive in determining whether the global economy enters a recession or avoids one. It is clear that central banks will need to respond to the current spike in energy prices. How they respond will be decisive in determining whether the global economy enters a recession or avoids one. With fresh memories of being too slow in 2021-2022, policymakers face increasing risks of overreacting. Will guilt from previous mistakes blur their judgment, or will they find a balanced response that steers the economy through… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch follow-through, not just the first reaction: liquidity, volatility and confirmation across related assets usually tell the real story.