Reinhardt has argued this year that rising inflation is unlikely to be temporary, as supply chain shocks have severely affected commodity prices, transportation costs, global shipping, and more; also, escalating tensions between Ukraine and Russia The virus has also added to inflationary pressures, sending oil prices up 77% from December 2020 to January this year.
Reinhart criticized the Fed for delaying rate hikes only prolonging the problem. If inflation persists, it is more effective to take measures sooner than later. If delaying action, it basically just pushes the current problem back; she said that all this Neither is temporary, and few things in life are permanent, but inflation will be quite persistent.
Although Fed officials have recently been very certain about raising interest rates in March, De Gallo, a member of the European Central Bank (ECB) Governing Council and President of the Bank of France, said that the ECB may end its bond-buying program as soon as the third quarter of this year, but not immediately rate hike.
De Gallo said during the online event that the emergency bond purchase program (PEPP) will end in March, and the end of March will be a transitional period for reducing bond purchases, reducing the scale of APP bond purchases every month or every two months. Completely end app purchases within Q3.
According to the ECB’s existing monetary policy guidelines, the ECB should end the bond-buying arrangement shortly before the start of interest rate hikes; De Gallo said that monetary policymakers should be flexible on the definition of “soon”, not necessarily Raise interest rates immediately after the end of bond purchases, but at intervals.