Economics
Lagarde Confronts Political Cost of ECB’s Subzero Rate Policy
- Popular backlash may put limit on how low rates can go
- Schnabel cites policy as ‘chief cause’ of German discontent
WATCH: The euro will remain grounded for the time being, says Credit Agricole’s Valentin Marinov.
(Source: Bloomberg)This article is for subscribers only.
“Nobody trusts you,” lawmaker Joerg Meuthen told European Central Bank chief Christine Lagarde, switching briefly to English during a tirade in his native German. “You should be aware of that.”
The far-right Alternative for Germany representative was railing about negative interest rates -- and while enduring bluster is par for the course for ECB presidents, the Feb. 6 encounter in the European Parliament also illustrated how politically charged that stimulus tool has become.