Asian investors trod a cautious path on Tuesday, with surging inflation the key point of concern on trading floors, while eyes were also on a virtual summit between Joe Biden and Xi Jinping as they plot their way through a period of tension between the superpowers. Global markets have enjoyed about 18 months of healthy gains, with many hitting record or multi-year highs, thanks to ultra-loose central bank monetary policies put in place at the start of the pandemic. But with the recovery well on track and people returning to a semblance of normality, inflation is surging to levels not seen in decades owing to a spike in demand and supply chain snarls, forcing policymakers to turn off the taps. Now there is a growing concern that officials, particularly at the Federal Reserve, will have to withdraw their massive support measures faster than hoped, while some observers have warned they could be leaving it too late, and risking prices running out of control. Among them are former New York Fed president Bill Dudley, who told Bloomberg TV that the central bank was “going to have to get the taper done quicker”, though he added that moving too fast could spook investors and cause a “taper tantrum”. And ex-Richmond Fed boss Jeffrey Lacker, warned: “They’re on track to a major policy blunder.” “They need to pivot, recalibrate pretty rapidly. They need to accelerate the taper, get rate increases started earlier next year, in the first half, and they’re going to need some good luck.” The concern was also being felt across the Atlantic, where Bank of England chief Andrew Bailey said he was “very uneasy about the inflation situation”.