F inancial markets have experienced an unusual sell-off this year as the prices of both bonds and stocks have fallen in response to sharply rising interest rates in an increasingly inflationary environment. Major central banks, led by the US Federal Reserve, have been forced to tighten monetary policy much faster than either they or investors had expected in January to battle higher prices for just about everything that consumers purchase.
Central banks, which typically aim to cool an economy and bring down inflation by making credit more expensive, had no choice but to Swing into action. The Federal Reserve raised interest rates in March for the first time since 2018 and subsequent increases have comprised the sharpest round
