2/3, 3:35 PM (Source: TeleTrader)
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Fed, ECB operating in different environments - Lagarde

The United States Federal Reserve and European Central Bank (ECB) are operating in different environments with "different economic data," ECB President Christine Lagarde said on Thursday.

To support her claim, she revealed at a press conference that the demand in the Eurozone is "pretty much back to where it was pre-COVID," while in the US, "it is 30%" up compared to pre-pandemic levels because of "massive fiscal stimulus." In the euro area, the stimulus has been "moderate" and "not excessive" and it is "producing measured pace at which some factors are significantly improving," according to Lagarde.

The ECB does not detect any indication of a wage-price spiral that would make inflation "run out of control," she added. However, there should not be a "wage moderation" as there is "clearly adjustment to be had" and which the Eurozone will see in 2022, she also stated.

Baha Breaking News (BBN) / MS