Finance ministers of major economies pledged to keep a close eye on financial markets and pledged to tighten monetary policy further after the recent fall in global markets, blaming Russia entirely for the current inflation shock. The G7 "will continue to monitor the markets closely given recent volatility," according to a communiqué released on Friday. The central bank “will continue to properly calibrate the pace of monetary policy tightening in a data-dependent and clearly communicated manner to ensure inflation expectations continue to be well anchored, while taking care to protect the recovery.” “Inflation is a huge danger to economic development,” the chair of the meeting said. German Finance Minister Christian Lindner told reporters. "We are committed to controlling inflation," with a "very, very big responsibility" for the "very independent" central bank. The meeting of G7 finance ministers near Bonn comes as confidence in the global economy is waning and the tragedy of Russia's invasion of Ukraine continues.

St. Louis Fed President James Bullard said the U.S. central bank should bring forward a series of aggressive rate hikes to 3.5% by the end of the year, which, if successful, would push inflation down and open the door to policy easing in 2023 or 2024 . "I've also said that by the end of the year it should be 3.5%, which is higher than what some of my colleagues are predicting," Bullard said in an interview with Fox Business on Friday. “The more we get ahead, the more we can control inflation and inflation expectations, the better it will be. Over the next few years (2023 and 2024), we can cut policy rates because we control inflation.” One of the Fed's most hawkish policymakers this year, Bullard again backed Fed Chairman Jerome Powell's plan to raise rates by half a percentage point at the June and July FOMC meetings. When asked about 75 basis points, Bullard said the possibility could not be ruled out.

European Central Bank President Christine Lagarde said the first rate hike in more than a decade could come in July, but played down the possibility of a 50 basis point hike amid concerns about economic growth. At the same time, she also attacked cryptocurrencies. As more members of the Governing Council aim to initiate rate hikes in the summer, Lagarde told Dutch television the ECB could raise rates "a few weeks" after net bond purchases end early next quarter - in line with the bank's guidance . "We're going to be on a path to stop net worth buying," she said. “Then, sometime after that — maybe a few weeks from now — raise rates.” ECB officials, increasingly concerned about record inflation, have opted to focus on the dangers of runaway prices as they fear Russia’s invasion of Ukraine, And a new supply chain crisis derailed the economic rebound.

Bank of Japan Governor Haruhiko Kuroda said he still believes 2 percent inflation is unsustainable in Japan. Japan's inflation rate has previously reached the level the country has long sought, for the first time since 2008 excluding the year of the tax hike. “The price action is exactly what we expected,” Kuroda told reporters in Bonn, Germany, on Friday. He was here to attend the G-7 finance ministers' meeting. Japan's core inflation rose sharply to 2.1 percent in April, making it harder for Kuroda to deliver a message of ultra-low interest rates as central banks around the world scramble to raise interest rates to curb inflation. So far, the BOJ governor is convinced that Japan needs to keep its accommodative policy on hold as the virus continues to impact the economy. He seemed to show that his resolve was strong. Japan's inflation overshoots the central bank's target, complicating the situation for the dovish Kuroda.

U.S. President Joe Biden and South Korean President Yoon Seok-wook pledged to continue pressure on Russia through sanctions and export controls, and underscored the damaging impact of Russia’s invasion of Ukraine on energy markets. The U.S. and South Korea plan to work together to secure energy supply chains, including those for fossil fuels and enriched uranium, according to a joint statement after the two men met. South Korea will continue to import Russian crude oil. This is the first meeting between Yin Xiyue and Biden. In the statement, the Russian-Ukrainian war was called the "most significant" threat to the international order. Yin Xiyue said at a press conference after the meeting that the "tragedy" brought about by the Russian-Ukrainian war must be resolved quickly. Biden said he believes "we are now at a turning point in world history" where democracy and dictatorship are vying for supremacy.

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