An economic recovery is already underway, says the president of the European Central Bank. Nevertheless, the world will not return to the low inflation environment, she believes.
European Central Bank (ECB) President Christine Lagarde said on Wednesday that the world “will not return to the pre-covid low inflation environment”. “There are forces that have been unleashed as a result of the pandemic, and with this major geopolitical shock that we are facing right now, that will change the framework and the scenario in which we operate,” she said. stated at the ECB’s annual forum, held in Sintra, west of Lisbon.
On the other hand, she pointed out that the unemployment rate in the euro zone is at a historically low level and that this is a sign that an economic recovery is already underway. According to Lagarde, states must help the “most vulnerable” but not go into debt by granting “generalized” support to “indiscriminate segments of the population”. The President of the ECB said that it will be up to the States to carry out “fiscal” policies, not monetary, to help those who are most exposed to rising prices and interest.
In turn, the chairman of the American Federal Reserve (Fed), Jerome Powell, indicated that “we don’t know if we will return to what we had before”. Powell said the North American economy is “robust” and able to withstand the impact of the determined interest rate hikes of recent months. He added that the Fed would continue to raise rates to “slow growth and give supply a chance to recover.” The annual three-day forum ended on Wednesday.
Sami Nemli / ECO Inspirations
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