Global economy heading for “mother of all” supply chain shocks as China locks down ports

Global economy heading for “mother of all” supply chain shocks as China locks down ports

By TYLER DURDEN

Over the past month, as Wall Street turned increasingly optimistic on US growth alongside the Fed, with consensus (shaped by the Fed’s leaks and jawboning) now virtually certain of a March rate hike, we have been repeatedly warning that after a huge policy error in 2021 when the Fed erroneously said that inflation is “transitory” (it wasn’t), the central bank is on pace to make another just as big policy mistake in 2022 by hiking as many as 4 times and also running off its massive balance sheet… right into a global growth slowdown.

zerohedge on Twitter: “The Fed is going from one huge error (inflation is transitory) to another huge error (4 rate hikes and runoff won’t crash markets). / Twitter”

The Fed is going from one huge error (inflation is transitory) to another huge error (4 rate hikes and runoff won’t crash markets).

And, as we have also discussed in recent weeks, one place where this growth slowdown is emerging – besides the upcoming deterioration in US consumption where spending is now being funded to record rates by credit cards before it encounters a troubling air pocket – is China and its “covid-zero” policy in general, and its covid-locked down ports in particular.

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