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John Authers

Hawks Summon Shadows of Europe's Sovereign Debt Crisis

Will Lagarde follow Draghi in doing whatever it takes to keep the single-currency zone together?

The hawks are circling.

The hawks are circling.

Photographer: Chris Hondros/Getty Images Europe

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The hawks have it. At the European Central Bank’s meeting, held Thursday in Amsterdam, President Christine Lagarde announced that asset purchases will end this month, committed to a 25-basis-point rise at the next meeting, and told the market to brace for another 50 basis points in September, unless inflationary pressure abated faster than the bank currently expects. The risks, Lagarde said pointedly, are to the upside