Fed's Powell tweaked his tone about inflation. Now, economists in Europe say the European Central Bank needs to do the same.
Rising consumer prices have been a matter of growing concern for financial markets. Inflation has reached levels above central banks' targets and money managers are skeptical about whether easy monetary policy is the right approach. This is no exception in the euro area.
He suggested that it remains unclear whether higher inflation in the euro zone will leave a more permanent mark on the economy.in the 19-member bloc at 4.9% in November. The ECB's policy is to work towards inflation of 2% over the medium term. Higher energy prices, ongoing supply chain issues and, more recently, the emergence of a new Covid-19 variant could push up inflation expectations.