The United States has announced that it will phase out its economic stimulus measures to put a stop to the epidemic-burdensome economy. In view of the economic recovery, according to the US Federal Reserve, massive bond purchases are no longer necessary.
Even the lowest interest rate policy must end – a delicate task.
However, US Federal Reserve Chairman Jerome Powell said the timing of the next rate hike and the exit from economic stimulus measures would depend on the further course of the recovery. No hurry. When the need arises to act, it will be done.
In contrast, the European Central Bank considers an interest rate hike next year “impossible”. Despite rising inflation on both sides of the Atlantic, Frankfurt central bankers see this as a temporary problem. Experts see the ECB’s warning as a result of the slow economic recovery in the eurozone.
In the United States, ING’s Bert Colligen says it can expect tariff hikes next year. However, for the euro zone, it will be a bit early. Just this week, ECB President Christine Lagarde said that economic growth would not change until then, justifying the rise in interest rates. Such a statement is a clear signal that the eurozone will not operate on monetary policy after the United States.
The ECB’s Govt Economic Incentive Scheme expires in March next year. However, analysts question whether the central bank will pursue similar measures beyond this date.
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