The United Nations (UN) on Monday warned that a global recession and prolonged stagnation lie ahead, driven by the monetary and fiscal policies of advanced economies, including that of the U.S. Federal Reserve.

In its Trade and Development (UNCTAD) report, the international body warned that all regions of the globe would be affected by a recession, but stressed that developing countries would edge closer to debt default unless central banks in advanced economies revert their course of action.

The warning comes as the U.S. central bank has continued raising interest rates in an effort to curtail inflation, currently at 40-year highs, by implementing yet another aggressive 75 basis-point rate hike last month.