Commentary: Inflation exposes Europe's great weakness
The increase in inflation, unlike in the US, is not an expression of economic strength. The ECB is acting decisively, but is largely being driven by external factors.
The European Central Bank (ECB) under Christine Lagarde and the Federal Reserve (Fed) under Kevin Warsh have different approaches to monetary policy. The ECB is seen as predictable, with markets expecting an interest rate hike next week, which was quasi-officially confirmed by ECB Director Isabel Schnabel. In contrast, the Fed's approach is unpredictable, with markets uncertain about a potential interest rate hike in mid-September. This uncertainty was increased by Warsh's recent comments on inflation in Jackson Hole.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Kommentar: Die Inflation entlarvt Europas große Schwäche handelsblatt.com
