Draghi Says Slow Inflation Progress Means Accommodation Needed
- ECB president speaks at Federal Reserve Jackson Hole symposium
- Labor factors mean wages reacting slowly as output gap closes
The Takeaways From Draghi's Jackson Hole Speech
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Mario Draghi reaffirmed the need for caution before the European Central Bank can remove euro-area monetary stimulus, saying inflation still has a way to go.
“We haven’t seen yet that self-sustained convergence of inflation toward our objective, our medium-term objective,” the ECB president said at the U.S. Federal Reserve’s Jackson Hole symposium in Wyoming on Friday. “On one hand, we are confident that as the output gap closes, inflation will continue to converge to its objective over the medium term. On the other, we have to be very patient” and “a significant degree of monetary accommodation is still warranted.”