ECB’s Lagarde sees higher inflation; Pushes back rate hike bets (ECB keeps foot on monetary gas pedal despite inflation) – muddled interest – News Couple
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ECB’s Lagarde sees higher inflation; Pushes back rate hike bets (ECB keeps foot on monetary gas pedal despite inflation) – muddled interest


It’s the same all over the world…the crazy central bank policies and the resulting inflation.

I have discussed the US Federal Reserve in depth, but it is time to focus on the European Central Bank (ECB) and its President Christine Lagarde.

FRANKFURT (Reuters) – European Central Bank President Christine Lagarde acknowledged on Thursday that inflation will be high for a longer period of time, but she backed away from market bets that price pressures will raise interest rates as soon as next year.

With central banks around the world signaling tougher policy amid rising prices, Lagarde said the ECB had done a lot of “self-research” about its stance but concluded that inflation was still temporary, so the policy response would be premature.

Searching for oneself? The European Central Bank is doing what Powell and the Federal Reserve (also known as Jerome Gate and Black Hearts) are doing. Keep foot on the monetary accelerator in the face of inflation.

Let’s start with inflation in the eurozone. It now stands at 4.10% on an annual basis. The core inflation rate is 2.10% on an annual basis. Inflation is now the highest since 2009 while core inflation is at its highest level since 2001.

Like the Federal Reserve, the European Central Bank is still putting its foot on the monetary accelerator pedal despite booming inflation.

So, Kristen, 19 countries in “Europe” with negative two-year sovereign returns aren’t low enough for you?

The ECB platform in Frankfurt reminds me of a bad TV test program where participants try to guess prices next year. He called it “The Price Is Wrong”.

Unless, of course, the European Central Bank anticipates a massive recession in the future.



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