Policymakers Wrestle Responses to Surging Dollar, Fed Rates As Global Growth Diverges

• Policymakers struggling to respond to surging dollar and high US interest rates • World economy resilient but some countries/sectors vulnerable to tighter conditions • Yen plunge below 154/dollar without Japanese intervention an example of inaction • Fed rate hike unlikely but could happen if inflation gets much worse, risks crisis • Global growth unevenly distributed leading to policy and outcome divergences