Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde engaged in discussions on monetary policy at the ECB Forum on Central Banking in Sintra today.
Powell emphasized in his ECB speech, "The labor market is still strong," while acknowledging, "The disinflation trend shows signs of resuming." He underscored the importance of data, stating, "We need to see more data like we've been seeing recently," and noted, "If the labor market unexpectedly weakens, that would also cause us to react."
Lagarde echoed Powell's sentiments, stating, "We are very advanced in the disinflationary path," and adding, "Inflation is heading in the right direction." She highlighted the ECB's focus on inflation components, noting, "We are very attentive to inflation components and services."
Investors are closely monitoring these comments for insights into potential policy divergence between the Fed and ECB, with implications for global markets and economic outlooks.
Stay tuned for updates as discussions continue at the ECB Forum.
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