Central Banks
Fed Rate-Cut Reluctance Will Limit ECB Leeway, Holzmann Says
- Hard to imagine multiple 2024 steps if US doesn’t move at all
- Austrian central bank chief speaks in interview in Washington
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The European Central Bank’s room for maneuver will be limited if sticky US inflation forces the Federal Reserve to delay monetary policy easing this year, according to Governing Council Member Robert Holzmann.
“I would find it difficult if we move too far away from the Fed,” Holzmann said in an interview in Washington. “If the Fed doesn’t cut rates at all this year, I hesitate to imagine us cutting three or four times.”