No ‘race to the bottom’ if Fed is forced to cut – Schnabel
ECB board member says politicised US central bank would be “very disruptive”
Isabel Schnabel has said she does not foresee a global “race to the bottom” if the US Federal Reserve is forced to cut rates.
The European Central Bank executive board member told Reuters in an interview published on September 2 that if the Fed were forced to cut rates, the world would see higher inflation because of “less elastic global supply, higher fiscal spending and ageing societies”.
This would be likely to force central banks around the world to start to hike rates again “earlier than many
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