In 2022, the U.S. Federal Reserve (FED) began a period of monetary policy tightening. In March 2022, the FED officially raised interest rates for the first time that year, marking the first rate hike since 2018. For the remainder of 2022, the FED is expected to continue increasing interest rates to combat inflation, which is at its highest level in 40 years. In May 2022, the FED will further discuss a 50-basis-point rate hike. According to the CME Fed Watch tool, there is a 98% probability that the FED will raise interest rates by 50 basis points at the upcoming meeting.

The European Central Bank (ECB), along with the FED, is one of the major central banks worldwide that has recently implemented monetary tightening policies. The ECB is inclined to tighten monetary policy to address surging inflation in the EU, driven by soaring energy and food prices. The geopolitical crisis between Russia and Ukraine has exacerbated the situation.

Currently, the ECB is not raising interest rates because domestic growth remains weak, and inflation is beyond the scope of monetary policy. However, interest rates are expected to rise after the bond-buying program concludes. The emergency bond-buying program (PEPP) officially ended in late March 2022. The asset purchase program (APP) will gradually taper and is expected to end by Q3 2022.

China continues to adhere to its Zero-Covid policy. China remains steadfast in its Zero-Covid-19 strategy, enforcing widespread lockdown measures. As a result, congestion at border crossings and seaports is unavoidable.