The Contrast between the US and Euro Zone Central Banks: Analyzing the Good Health of the American Economy and Potential Monetary Tightening

2023-11-01 18:39:45

Published on November 1, 2023 7:39 p.m. / Modified on November 1, 2023 9:07 p.m.

The contrast between the central banks of the United States and the euro zone is striking. On the one hand, the Fed, which met on Wednesday and left its rates unchanged, is once once more under pressure… because of the good health of the American economy. In the third quarter, to everyone’s surprise, growth in the United States reached 1.2%, far from any slowdown.

Under these conditions, “Jay” Powell, president of the central bank, warned last week that a further increase in interest rates was not ruled out for the next meetings: “Other indications that growth persists in the above trend [de long terme]or that the labor market does not relax, may endanger the progress made on inflation and might require additional monetary tightening.

Interested in this item?

Don’t miss any of our content published daily – subscribe now from 9.- CHF for the first month to access all our articles, files, and analyses.

CHECK OFFERS Good reasons to subscribe to Le Temps: Consult all unlimited content on the site and the mobile application Access the paper edition in digital version before 7 a.m. Benefit from exclusive privileges reserved for subscribers Access the archives

1698872518
#European #economy #stalling #compared #United #States

Leave a Replay