The volatility in the yuan over the last week dramatizes the difficult street ahead for the People’s Bank of China (PBOC).
PBOC Governor Yi Gang spent the last six-plus months trying to accomplish a precarious balancing act: supporting flagging growth while stopping surging global inflation from upending Asia’s biggest economy.
This feat is getting harder by the day thanks to Yi’s version in Washington, Jerome Powell . At Federal Reserve headquarters, Chief excutive Powell is scrambling to clean up chaos of his own creation.
Because the Given didn’t tighten when it could – state, 12 months ago – it’s playing catchup on the worst inflation in 40 years. Today, fears of economic downturn have Powell on the tightrope the likes of that the Fed has never had to navigate.