Citi CEO Jane Fraser is convinced Europe will fall into a recession (US.C) - 24 mai 2022
The Wall Street chief did not give a timeline for the downturn. However, her October 2021 prediction of a “brutal winter” for markets proved largely accurate, with stock markets embarking on a major sell-off in early 2022 with losses extending to today. The U.S., which has so far demonstrated “more resiliency” in the economy, the labor market and among consumers, may yet skirt a recession, Fraser said.
Villeroy de Galhau said he would “disagree” with Fraser’s prognosis for the European economy, describing it instead as “resilient.”
“The main problem, at least in the short run, is inflation,” he said. “This is why we have to normalize monetary policy.”
The ECB on Friday gave its strongest indication yet that it will soon begin hiking interest rates — potentially in July — with market players now pointing to at least four rate hikes before the end of the year.
The ECB has long been resistant to rate hikes, insisting that price pressures would diminish in the second half of the year.