The Federal Reserve is the only one of the world’s major central banks that could adjust policy to meet a new economic downturn, said former Bundesbank president Axel Weber.
“The only bank that has any room to manoeuvre is actually the Federal Reserve,” he said in a discussion panel on January 22 at the World Economic Forum at Davos.
“Central banks are on hold,” Weber added. “I think the ECB will never even leave negative territory if they don’t start raising rates this year.”
Pendant ce temps Draghi est très pessimiste
European Central Bank president Mario Draghi warned today (January 24) that the balance of risks to eurozone growth has “moved to the downside”.
Draghi announced that the ECB’s governing council would be holding the bank’s monetary policy instruments unchanged, as had been widely expected.
But his statement was one of the more pessimistic of those he has given in recent years. He warned that the ECB feared growth was being threatened by uncertainty over protectionism and political instability.