ECB President Lagarde (Q&A), on Fed Chair nominee Kevin Warsh, says 'we go back a long way' welcomes announcement of his appointment

Lagarde's comment on Warsh's appointment is noteworthy as it signals a potential alignment on monetary policy views between the ECB and the Federal Reserve.

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ECB President Lagarde (Q&A) says ECB has projected undershooting of inflation in 2026 for a long time; in December, our forecasts moved back on track; medium-term, inflation is seen at 2% in 2027 and 2028

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ECB President Lagarde (Q&A), on Fed Chair nominee Kevin Warsh, says 'we go back a long way' welcomes announcement of his appointment

ECB President Lagarde (Q&A) says some inflation upside is a result of base effects from last year's energy costs; inflation is gradually moving back to target, and ECB sees it at target in the medium-term

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Context

Her welcoming tone may suggest expectations for collaborative monetary policy approaches, which could impact market sentiment around the euro and dollar, along with influencing fixed income dynamics. Traders should monitor how this might shift the outlook for future rate developments and cross-currency flows.

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