“Our country is able, by following the path already taken by prudent policies and reforms, to manage the consequences of gradual but necessary monetary restrictions.” This was stated by the Governor of the Bank of Italy, Ignazio Fiesco, speaking to the Ambrosetti Clip. According to Visco, “The alarms that are sometimes raised about the effects that further increases in official rates could have on our economy cannot be shared.” Instead, Visco stresses the “significant risks” from inflation for households, businesses, and savings.
Visco: Interest rate approach and monetary tightening is prudent
The Governor of the Bank of Italy has also returned to calling for a “cautious approach” in normalizing the ECB’s monetary policy. Viscoe believes that “the direction of travel can only be the one that Frankfurt has taken in recent months of increases, but it invites us to balance inflation risks inherent in expectations and wages with those of very dire financial conditions for families and businesses.” In other words, I’m not convinced that he is. Today it is better to risk too much restriction than too little,” stresses the governor.
Yellen: I’m optimistic, inflation is going down
“We still have a very tense job market. We are seeing some signs of inflation in services that require continued attention, but I am generally optimistic that inflation is declining,” US Treasury Secretary Janet Yellen, speaking to reporters on the sidelines of a visit to Zambia, told international media. Yellen: “I think we in the U.S. continue to see a strong labor market and progress in inflation,” and there are “very promising signs.” Yellen also said there’s been good news about U.S. inflation over the past six months, with lower energy and energy prices shipping and commodity prices, while largely easing supply chain issues.The Treasury secretary also stressed that home rental prices should fall in the coming months, which would help.
“We’re seeing a significant reduction in supply chain issues, inventories rebuilding, and shipping costs going down,” Yellen told reporters. Thus this part of inflation no longer contributes significantly (to higher prices, so)”.
In the US, several measures of inflation have shown encouraging signs in recent weeks, including a decline in the consumer price index, which fell to 6.5% in the year through December, from a high of 9% in June. Producer prices also fell faster than expected.
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