Good morning. The ECB is behind the curve, bears are ripping up bonds, Biden takes aim at Trump and the threat of civil unrest is spiking worldwide. Here’s what people are talking about.
The European Central Bank is behind the curve on tackling record euro-zone inflation and will have to act more forcefully than earlier envisaged to wrest control of prices, according to a survey of economists. Despite a surprisingly big increase in interest rates in July, more than two-thirds of respondents say officials have acted too slowly in battling inflation that’s just hit 9.1%. They now predict a higher end-point for the cycle of hikes, reached more quickly and including a 75 basis-point step on Sept. 8. Meanwhile, a planned emergency intervention in European power markets may lower prices but won’t protect the region’s economy from the spillover effects of a historic energy crunch, according to the bloc’s executive arm. Russia is crimping gas supplies as it continues its war in Ukraine.