Although the speeches of the head of the ECB have little to do with the US stock exchange, she also made a number of important statements during the economic summit in Portugal. Christine Lagarde said the world economy is likely to return to a „low-inflation environment” soon. She talked about how the „economic landscape” that has changed a lot in the last 2.5 years, first due to the coronavirus pandemic and then due to the geopolitical conflict in Ukraine, is now completely different. The global economy must learn to live by the new rules. If we translate her statements into simpler language, Lagarde does not believe that inflation will be able to return to 2%, or at least that it will happen in a year or two. Perhaps she meant only the European economy as we can all see that the ECB is not rushing to be honest with rate hikes and is much more concerned about a possible recession. However, remember that a year ago no one imagined that inflation would rise to 40-year highs, and Jerome Powell and Lagarde had long „fed” us with statements that high inflation was a temporary phenomenon. Now Lagarde says the energy crisis has started and that high energy prices will linger for a long time to come. So it seems that what the head of the ECB hoped for when she predicted a decline in inflation without the regulator’s intervention, will not come true. that high inflation is a temporary phenomenon. Now Lagarde says the energy crisis has started and that high energy prices will linger for a long time to come. So it seems that what the head of the ECB hoped for when she predicted a decline in inflation without the regulator’s intervention, will not come true. that high inflation is a temporary phenomenon. Now Lagarde says the energy crisis has started and that high energy prices will linger for a long time to come. So it seems that what the head of the ECB hoped for when she predicted a decline in inflation without the regulator’s intervention, will not come true
