Central bankers predicted further policy tightening to combat stubborn inflation at the annual ECB forum on Wednesday. But some sounded optimistic notes on their ability to keep interest rates high without causing an outright recession.
Representatives from the European Central Bank, the Federal Reserve, the Bank of Japan, and the Bank of England were present at the event hosted in the Portuguese mountain resort of Sintra. The four are the custodians of the most traded currencies. They share a common goal as economies struggle to deal with rising prices following the war in Ukraine and the economic reopening post-COVID.
Central Bankers Hint at Further Interest Rate Rises
Jerome Powell, the chair of the Federal Reserve, said he believed “policy [hadn’t] been restrictive enough for long enough.” The 70-year-old former investment banker acknowledged there was a significant chance of a recession in the US but said it was not the most likely scenario.
Christine Lagarde, the chair of the European Central Bank (ECB), recognized the risk of a European recession. However, like the Fed, it was not the ECB’s baseline expectation. “We are not seeing enough tangible evidence of [that] underlying inflation, particularly domestic prices, are stabilizing and moving down,” she said.
Bitcoin and other crypto assets are one strategy you can use to hedge against inflation. Learn more here: How to Protect Yourself From Inflation Using Cryptocurrency
The Bank of England (BOE), the central bank of the United Kingdom, and the issuer of the Pound Sterling curr
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Author: Josh Adams
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