ECB’s Wunsch Warns Against Calls to Expand Inflation Mandate

European Central Bank Governing Council member Pierre Wunsch pushed back against suggestions that the institution’s inflation-fighting mandate should be widened to include things like green goals.

“Be careful what you wish for,” the Belgian central-bank chief said Wednesday in Frankfurt. “Pushing central banks into the inherently political waters of tilting relative prices could open Pandora’s box. Never-ending mission creep and ultimately, politicization would loom large.”