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Interest Rate Cuts: Be Careful What You Wish For
There is a significant risk that the emerging trend of lower interest rates will put us right back where we started just before the recent inflation episode.
There is a significant risk that the emerging trend of lower interest rates will put us right back where we started just before the recent inflation episode.
As the Federal Reserve readies its first rate cut since the inflation spike, it joins the ECB in facing an economic slowdown with persistent, elevated inflation rates.
In private, Eurocrats are not optimistic about Harris’ candidacy.
Inflation varies wildly across the euro zone. Economists have not yet been able to explain why; here is my hypothesis.
There are signs that the policymakers at the ECB realize that this rate cut was not a very good idea.
With inflation and the business cycle moving in very different directions across the euro zone, the ECB’s expected rate cut may end up being of no real economic consequence.
Polish MEP says government attack on central bank president is “purely politically motivated and has no factual or legal basis.”
The prospect for lower interest rates in Europe is fading, but the reason has nothing to do with the European economy. The reason is found on the other side of the Atlantic Ocean.
ECB staff are revolting against attempts to “reprogramme” employees critical of green policies, with one bank executive under fire for his hardline approach.
Low inflation and rising unemployment suggest that the ECB will soon abandon its tight monetary policy.