Financial TimesFinancial Times

Financial instability: The hunt for the next market fracture

By Eric Platt and Kate Duguid in New York, Tommy Stubbington and Jonathan Wheatley in London and Leo Lewis in Tokyo

05 Dec 2022 · 7 min read

Editor's Note

The FT dives deep to explain the variety of factors—from rising interest rates to fiscal shocks— sucking liquidity out of global financial markets, causing wild market swings and raising new risks.

After a decade of falling interest rates and central bank largesse, global financial markets are facing a reckoning.

Soaring inflation is being met by rising interest rates, the slowing of central bank asset purchases and fiscal shocks, all of which are sucking liquidity, the ability to transact without dramatically moving prices, out of markets.

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