The Federal Reserve Slams the Breaks and Risks Spinning Out

Oct. 12, 2022 5:30 pm ET

The world has never been as indebted, and credit has seldom been as poorly allocated, as it is today. Yet in his op-ed “

Stay the Course, Chairman Powell” (Oct. 6), Jason Furman is surprisingly sanguine that the Federal Reserve isn’t inviting a full-blown world financial-market crisis by persisting with its hawkish monetary-policy stance.

The Fed’s tightening hasn’t yet worked its way through the U.S. and world economies, yet serious strains have already emerged in credit markets, while equity markets have entered bear-market territory.

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