ECB President Lagarde (Q&A), again asked about stagflation, says the characterisation belongs in the 1970s - an entirely different situation than today

Lagarde's remarks on stagflation suggest a hawkish posture as she distances current conditions from the past, which could support a tighter monetary policy stance. This characterization implies that the ECB might not prioritize downturn risks as highly, potentially influencing interest rates and market sentiment. Keep an eye on the euro's reaction and how fixed income might adjust amid these comments.