ECB Forum: Lagarde Stresses Inflation Focus as Fed Chief Warsh Praises Her Stance

ECB Forum Christine Lagarde Kevin Warsh forward guidance inflation focus

At the 13th edition of the ECB Forum in Sintra, Portugal, ECB President Christine Lagarde said the June rate hike was appropriate and announced that the central bank will no longer use forward guidance. Instead, the ECB will rely on its reference rate to stabilise inflation, making decisions meeting by meeting based on data.

New Fed chair Kevin Warsh, speaking after the forum, praised Lagarde and reiterated that future guidance can distort markets. He emphasized that the Federal Reserve will also keep price stability as a priority while remaining independent. Both central banks stressed that inflation remains too high and that their policies will focus on measured adjustments.

The panel also included Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem. Lagarde announced that the next ECB Forum will be held the following year.

Sources

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