The headlines followed by the global financial media last night and this morning are as follows:

1. The International Monetary Fund warns the central bank that higher-than-expected tightening policies may lead to a sharp fall in the market.

2. Fed dove officials: support rapid interest rate hikes to make interest rates neutral by the end of the year

3. Traders expect the implied probability of the Fed to raise interest rates by 50 basis points in each of the next two meetings to 100%.

4. Fed beige book: geopolitical situation and high inflation cast a shadow over growth prospects

5. Canadian inflation unexpectedly hit a 30-year high in March. Interest rate hikes are expected to rise sharply.

6. It is reported that Musk began to contact Wall Street financial institutions to finance the acquisition of Twitter.

The International Monetary Fund warns that the central bank's more-than-expected tightening policy could lead to a sharp fall in the market.

Global stock and bond markets are at risk of selling because central banks, including the Federal Reserve, may be forced to raise interest rates more than investors expected to curb inflation, a senior IMF official said.

Tobias Adrian, director of monetary and capital markets at IMF and a former senior vice president of the New York Fed, said in a telephone interview late Tuesday that if monetary policy tightens into a recession, the chances of a sharp fall in the market will increase.

As a result of the crisis in Ukraine, the IMF earlier on Tuesday cut its global growth target sharply in the first few months of the outbreak and raised its inflation forecast. In particular, the IMF warned that the record debt incurred by some countries in the fight against the epidemic limited the ability to control price increases through fiscal means, especially the risk of soaring food prices.

"the central bank may have to tighten policy more than currently expected, so there may be surprises in the future," Adrian said. "I do think the stock market could fall again. Bonds are likely to sell further. Credit spreads have widened, but so far they have not been dramatic. And yields are likely to rise further. Interest rates on fixed-income sovereign bonds are likely to rise further. So I don't think anything is safe at the moment. "

Fed dove officials: support for rapid interest rate hikes to make interest rates neutral by the end of the year

Mary Daly, president of the Federal Reserve Bank of San Francisco, said Fed officials should act quickly to raise the benchmark interest rate to neutral by the end of the year.

"I think rapid progress towards the goal of reaching neutral interest rates by the end of the year is a sound path," Daly said in a speech in Las Vegas on Wednesday. She points out that most forecasters think the neutral level is around 2.5 per cent. "A purposeful shift to a neutral position that does not stimulate the economy is a top priority. "

The Fed raised interest rates by 25 basis points at its March meeting. Several policymakers, including the Daly, say they are willing to raise interest rates by 50 basis points next month if necessary to curb the hottest inflation in four decades.

Daly said that once neutral, the Fed should assess the impact of policy tightening, as the epidemic and the war between Russia and Ukraine pose many risks to the economic outlook.

Traders expect the implied probability of the Fed to raise interest rates by 50 basis points in each of the next two meetings to 100%.

Us short-term interest rate traders on Wednesday pushed the implied probability that the fed raised interest rates by 50 basis points each time in may and June to 100 per cent, ending weeks of hovering below that level.

A 50 basis point rate hike in May would be the first since May 2000. In subsequent cycles, the Fed raised interest rates by just 25 basis points, which has been clearly communicated to the bond market.

With headline and core inflation at their highest levels since the early 1980s, Fed chairman Jerome Powell and other Fed officials have hinted that they are prepared to raise interest rates by 50 basis points if necessary. Powell will attend a panel discussion at the International Monetary Fund (IMF) on Thursday, which will be his last public appearance before the Fed's quiet period before the May meeting of the Federal Open Market Committee.

The Fed is currently expected to raise interest rates by a total of 100 basis points at its meetings on May 3-4 and June 14-15, up from 94 basis points at Monday's close. In the US Treasury market, the yield on the policy-sensitive two-year note rose to 2.625 per cent at one point, the highest level since December 2018, before falling back to about 2.58 per cent at the start of the year; it was only about 0.75 per cent at the start of the year.

Fed beige book: geopolitical situation and high inflation cast a shadow over growth prospects

Us economic activity has expanded at a moderate pace since mid-February, according to the Fed's beige book survey released on Wednesday. The uncertainty brought about by recent geopolitical developments and rising prices has cast a shadow over future growth prospects.

Inflationary pressures have remained strong since the last report, with companies continuing to pass on rapidly rising input costs to customers, the report said. Contacts in all regions, especially in manufacturing, have noted sharp increases in raw materials, transportation and labour costs. Contacts in several regions reported that the prices of energy, metals and agricultural products soared after the conflict between Russia and Ukraine. Some contacts pointed out that the impact of the epidemic in China had exacerbated supply chain disruptions. In addition, contacts in some regions noted that price increases had a negative impact on sales. Companies in most regions expect inflationary pressures to persist in the coming months.

On the labour market, the beige book reported that despite the recruitment and retention challenges in the labour market, some regions reported moderate employment growth. Demand for workers in most regions and industry sectors continues to be strong. However recruitment was hampered by an overall lack of available workers although several regions reported signs of slight improvement in worker availability.

Canadian inflation unexpectedly hit a 30-year high in March and expectations of a rise in interest rates rose sharply

Canada's higher-than-expected inflation rate hit a 30-year high in March, further boosting expectations that the Bank of Canada will continue to raise interest rates sharply in the coming weeks.

Statistics Canada on Wednesday showed that the consumer price index (CPI) rose to 6.7 per cent year-on-year last month from 5.7 per cent in February, the highest level since January 1991 and exceeding the median forecast of 6.1 per cent in a Bloomberg survey.

"Today's unexpectedly high inflation data greatly increases the possibility of another 50 basis point interest rate hike in June," Royal Bank of Canada economist Josh Nye said in an interview. "the market is starting to tilt in this direction. "

It is reported that Musk began to contact Wall Street financial institutions to finance the acquisition of Twitter

Tesla, Inc. CEO Elon Musk (Elon Musk) has begun to contact potential Wall Street financial partners to acquire for him, according to people familiar with the matter.$Twitter (TWTR.US) $Raise money.

Mr Musk and his advisers have held talks with several potential partners on debt financing, the person familiar with the matter said. At present, Wall Street's largest banks and M & A firms disagree on whether they will step in to help Musk buy Twitter.

Morgan Stanley will almost certainly help support Mr Musk's bid, according to people familiar with the matter. In fact, Morgan Stanley was the behind-the-scenes adviser for Musk's unsolicited bid for Twitter.

Apollo Global Management (Apollo Global Management Inc) is also interested in helping Musk acquire Twitter, another person familiar with the matter said earlier this week.