The Lagarde Era at the ECB Begins

The Christine Lagarde-era at the European Central Bank (ECB) is underway and the new President gets her 1st chance to frame her outlook for the economy and monetary policy publicly Monday.

Ms. Lagarde, who took the mantle on 1 November from Mario Draghi, will speak in Berlin at a time when policy makers at the ECB are split over dwindling stimulus tools and the economy is flirting with recession.

She may use the opportunity to tell governments, including Germany’s, to do more to boost demand.

Lagarde takes over against a backdrop of flagging growth and stubbornly low inflation,” said the chief European economist at Bloomberg Economics. “Stimulus options are limited and the Governing Council is divided. She will have a fight on her hands to turn the euroarea around.

Have a terrific week