European Central Bank President, Christine Lagarde, emphasized the commitment to combat inflationary pressures in the eurozone during her speech at the annual symposium in Jackson Hole, Wyo. She stressed the need to adjust monetary policy in the face of a changing and uncertain global environment.
In light of these challenges, Lagarde highlighted the importance of adopting an open-minded approach and revisiting analytical frameworks to effectively respond to new developments. Amidst this uncertainty, central banks are responsible for providing a solid foundation for economic growth and maintaining price stability.
Lagarde stated that for the ECB, this means setting interest rates at levels that will ensure a return of inflation to their target of 2% in a timely manner. The determination to achieve this goal will guide policy decisions, with interest rates being kept at sufficiently restrictive levels for as long as necessary.
Following Lagarde’s remarks, the euro showed little change against the dollar. Market participants closely watched Fed Chair Jerome Powell’s comments earlier, which indicated a possible need for further rate hikes to control inflation.