European stocks fell sharply on Thursday and were on course for their worst quarter since the pandemic-led carnage in early 2020 amid worries about prolonged inflation leading to a global economic downturn.
The dollar remained on the front foot against major peers after the world's top central bank chiefs warned that the high inflation pressure may last longer than expected.
Cleveland Fed chief Loretta Mester said the U.S. central bank is "just at the beginning of raising rates" and there are "risks of recession." She wants to see the benchmark lending rate hit 3-3.5 percent this year and "a little bit above four percent next year".
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.