Important. For Lagarde, the policies of the FED and the ECB will “desynchronize”. – Insolentiae

“The monetary policies of the European Central Bank (ECB) and the Federal Reserve (Fed) will diverge in the near future, with the war in Ukraine having very different effects on the economies of the European Union and the United States, announced on Monday the president of the Frankfurt institution, Christine Lagarde. The monetary policies of the European Central Bank and the Fed will therefore become out of sync, according to Lagarde. First question why? Because the war in Ukraine, because the European ecological and energy transition will be very inflationary (as predicted and said many times in these columns), because we will not be able to raise the rates, because we will have to help European companies and because we do not have enough growth to pay past debts. Second what does it mean? Free or cheap money, low rates forever or almost, fall in the euro against the dollar, rise in imported inflation on everything we buy “elsewhere”, that is to say everything since the we no longer produce anything. It is therefore a huge inflationary shock that awaits us, a rise in the dollar, a fall in the euro, and… a rise in gold in euros! Charles SANNAT “This is a ‘presslib’ article, that is to say free of reproduction in whole or in part provided that this paragraph is reproduced after it. Insolentiae.com is the site on which Charles Sannat expresses himself daily and delivers an impertinent and uncompromising analysis of economic news. Thank you for visiting my site. You can subscribe to the daily newsletter free of charge at www.insolentiae.com. » Source Reuters news agency via Boursorama.com here