- August 31, 2022
- Posted by: Stratford Team
- Category: Economy
Inflation in Europe is at record highs since the beginning of the Eurozone, while in the US you would have to go back four decades to find a similar situation. Strong price pressures have forced central banks to act at a time when the economy is still under threat from the pandemic, With other factors such as the war in Ukraine and the lockdown in China, there seems to be a greater cause for pessimism.
“The central banks of America and Europe have arrived too late, reacting when inflation was already not seen since the 1980s,” he warned. Pablo Gil, Head of Strategy at XTB, “Now everything is to make up for the time lost, and as announced, they are preparing to increase the rates at an accelerated pace. Most likely, they will lead to stagnation in consumption and, with it, in GDP. “Both Powell and Lagarde are confident that this is just an economic downturn and not a new recession, but given the ‘track record’ of central banks, I…
