Quote from "Guerre aux Chaires d’Économie Politique."

Inflation is a concern for companies, so too recession. Indeed, the last time managements were talking this much about recession - they were in one.

After years of implementing ultra-dovish policy, central banks have hiked rates rapidly over the past few months to try to rein in a surge in inflation and prevent a break-out of inflation expectations. In doing so they are acting as if the economy is moving into a high inflation regime, but it remains unclear for now whether this is actually the case. The risk is that their actions will push the economy into recession, in which case they will probably have to cut rates all the way back to zero again.