Exactly. If central banks stop tightening, we’re going to have some pretty nasty inflation. If they continue raising interest rates, we risk recession. But the inflation is almost certain given the former, while recession is only a risk of the latter.
I’m not smart enough to opine on the world economy. I only know the US numbers. And in the US, I agree with the Fed’s actions. There are more jobs than people willing to fill them. So there is room to slow the economy - perhaps even going into recession - without causing high unemployment.
–Peter