(OP)inions Central Banks withdraw support

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February 7, 2021

Two years after the pandemic sent the global economy into a deep but short recession, central bankers are withdrawing their emergency support — and they‘re moving faster than they or most investors had foreseen.

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The U.S. Federal Reserve ispreparingto raise interest rates in March, and last Friday’s jobs report fueled speculation it may need to moveaggressively. The Bank of England just delivered back-to-back hikes, and some of its officials wanted to act even moreforcefully. The Bank of Canada is set for liftoff next month. Even the European Central Bank mayget in on the actionlater this year.

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