Global economy may be entering a difficult era and economists are worried

The warnings of longer-term trouble come as investors are growing somewhat more hopeful of the Federal Reserve's ability to rein in sky-high inflation without causing a recession

The world economy looks to be transitioning to a more difficult era where interest rates will be higher, geopolitical tensions greater and uncertainties more pronounced.

That’s the message that emanated from this year’s annual meeting of the American Economic Association in New Orleans. Economic luminaries — including former US Treasury Secretary Lawrence Summers, ex-International Monetary Fund chief economist Kenneth Rogoff and former Bank of England policymaker Kristin Forbes — warned of perils ahead.

On the way out is an era of ultra-low interest rates and rapid Chinese growth. Investors and policymakers will instead confront a new world where an intensifying US-China rivalry