Will Lagarde and the ECB Survive this Inflection Point in Geopolitics? Author: Tom Luongo Recently, ECB President Christine Lagarde shocked markets with surprisingly hawkish talk at her monetary policy press conference. Lagarde didn’t make any sudden moves in policy or anything. The ECB has yet to end any of its bond-buying and internal debt-transfer alphabet soup projects, and won’t until Q3 at the earliest. Markets were not prepared by her previously that she would set such a hawkish tone. Say what you want about FOMC communications policy, at least under Jerome Powell, they tell you what they are going to do and then do it. But Lagarde needed to do something dramatic because capital markets were moving quickly against her. Traders stopped trying to disbelieve the illusion of Fed hawkishness and finally accepted what Powell was saying. For better or worse (and that debate was lively in this podcast I did with Peter Boockvar last week) the Fed will raise rates in March. This isn’t
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