Even dovish FOMC members are now supporting faster and larger rate hikes—likely including a half-point increase in May and a total of more than 2 percentage points in hikes before the end of 2022.
Fed Chair Powell told the House Financial Services Committee that he backs a quarter-point interest-rate hike this month, and he didn't rule out a larger move in the near future.
Fed and ECB strategy of moderation is fraught with risks. Still, one Fed president says, "abrupt and aggressive action can actually have a destabilizing effect on growth and price stability. The most important thing is to be measured at our pace."
Even after Covid risks subside, companies will have to re-orient their hiring for just about every profession, due to slowing growth of the labor force.