World Markets Has Fear of Recession

Stock markets tumbled, the pound crashed against the dollar and 

oil prices slumped Friday on growing recession fears after central 

banks this week ramped up interest rates to fight decades-high 

inflation. With price rises showing no solid sign of letting up, monetary

policymakers have gone on the offensive, warning that short-term

hits to economies are less painful than the long-term effects of not 

acting. The Federal Reserve's decision Wednesday to lift borrowing

costs by 0.75 percentage points for a third successive meeting was 

followed by a warning that more big rises were in the pipeline and 

that rates would likely come down only in 2024. There were similar

moves by central banks in other countries including Britain, Sweden,

Norway, Switzerland, the Philippines and Indonesia -- all pointing to

a dark outlook for markets. Wall Street extended losses Friday while

European equities sank in afternoon deals and Asia finished lower.

"A negative end to the week in Asia, and Europe has quickly followed

as the prospect of much more tightening and a recession weighs on 

sentiment," said Craig Erlam, analyst at trading platform OANDA. In a 

sign that recession expectations are rising, the 10-year US Treasury

yield jumped to its highest level in a decade. The UK 

10-year yield struck an 11-year high on Friday.