As the five factors set out in last week’s note played out, recognition is growing that the global economy and financial markets are navigating an increasingly complex and divergent landscape. The events of the past week have starkly underscored that what too many regard as temporary and quickly reversible may well have a much longer influence—from hotter inflation and higher-for-longer interest rates to structural changes and much more constrained policy responses. As these realities continue to test institutional frameworks, the disconnects across the economic, financial, political, and social spheres are becoming ... (full story)