Post by account_disabled on Mar 9, 2024 5:16:13 GMT -6
European Central Bank can easily start a debate with the US president Unlike in the United States, where the debate about whether the Fed should be political has only just begun, in Europe the situation is very different. Responsible to the European Parliament and devoid of critics like the government and the president of the eurozone (because they do not exist at all), the ECB suffers from no political pressure. On the contrary, if necessary, the central bank can prove itself that poverty is not an empty refrigerator, poverty is when there is no refrigerator. So it was with Jean-Claude Triche, who used to write letters to Ireland and Italy telling them what to do. That was true under Mario Draghi, who, after having deprived Greece of the necessary liquidity, quickly made concessions to the EU. LiteFinance: ECB pursues politics, Fed avoids it | Litefinance The European Central Bank guarantees the existence of the euro, so it is forced to be more than just political.
It has to be hard. A kind of judge of those who do not comply with the EU requirements. Italians can laugh at the limits of the budget deficit. Laughter lengthens your life, but, in court, it lengthens your sentence. The ECB's Paraguay Mobile Number List carrot and stick policy often suggests the carrot for the bank and the stick for everyone else. Its independence appears much stronger than that of the Fed, and Mario Draghi can easily retaliate against Donald Trump's accusations of a competitive devaluation of the euro by claiming that weakening the currency is not what the central bank is aiming for. It is just a side effect of the monetary policy applied. LiteFinance: ECB pursues politics, Fed avoids it | Litefinance Jerome Powell says nothing in a similar situation. He long ago understood that the president of the United States will always blame someone else for his own mistakes. The president of the United States attributes everything to the Federal Reserve and looks like a hunter who hates killing animals. That's why the forest is full of wounded people.
Trump, by the way, can afford it. He obviously he is the most popular person in the world, he can also be the most popular when everyone hates a person. After all, let's move on to business, that is, the ECB. LiteFinance: ECB pursues politics, Fed avoids it | Litefinance The main problem with the central bank not caring about criticism from policymakers is within its board of directors. Before the Governing Council meeting is September, after which investors expect the deposit rate cut and the restart of QE, there is talk of a split in the board of governors. A part of the ECB board members believe that they need to do something urgently, because when you are just waiting for what happens next, you should not be surprised when it already happens without you. Their opponents suggest that if you do nothing, you won't have to correct anything. The first, the pigeons, are traditionally on the outskirts of the euro zone. As usual, Germany and the Netherlands are among the hawks. The question is, which camp will France join? Personally, I am surprised by the Bundesbank.
It has to be hard. A kind of judge of those who do not comply with the EU requirements. Italians can laugh at the limits of the budget deficit. Laughter lengthens your life, but, in court, it lengthens your sentence. The ECB's Paraguay Mobile Number List carrot and stick policy often suggests the carrot for the bank and the stick for everyone else. Its independence appears much stronger than that of the Fed, and Mario Draghi can easily retaliate against Donald Trump's accusations of a competitive devaluation of the euro by claiming that weakening the currency is not what the central bank is aiming for. It is just a side effect of the monetary policy applied. LiteFinance: ECB pursues politics, Fed avoids it | Litefinance Jerome Powell says nothing in a similar situation. He long ago understood that the president of the United States will always blame someone else for his own mistakes. The president of the United States attributes everything to the Federal Reserve and looks like a hunter who hates killing animals. That's why the forest is full of wounded people.
Trump, by the way, can afford it. He obviously he is the most popular person in the world, he can also be the most popular when everyone hates a person. After all, let's move on to business, that is, the ECB. LiteFinance: ECB pursues politics, Fed avoids it | Litefinance The main problem with the central bank not caring about criticism from policymakers is within its board of directors. Before the Governing Council meeting is September, after which investors expect the deposit rate cut and the restart of QE, there is talk of a split in the board of governors. A part of the ECB board members believe that they need to do something urgently, because when you are just waiting for what happens next, you should not be surprised when it already happens without you. Their opponents suggest that if you do nothing, you won't have to correct anything. The first, the pigeons, are traditionally on the outskirts of the euro zone. As usual, Germany and the Netherlands are among the hawks. The question is, which camp will France join? Personally, I am surprised by the Bundesbank.