November 07, 2024 16:32 GMT
MNI BRIEF: US Spillover Not Only In One Direction-ECB's Lane
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MNI (ROME) - The spillovers from the U.S. election from a stronger dollar and higher Federal Reserve rates higher than initially expected are “not only in one direction” of more eurozone inflation, European Central Bank executive board member Philip Lane said on Thursday.
The impact on the exchange rate, bond markets and energy and commodities prices will all be significant, Lane said in an event in Athens. A weaker euro could improve exports, he said, noting that the euro area was not “a small open or dollarised economy”.
“We look at everything. Let’s not exaggerate the impact of the Fed,” he said. (See MNI INTERVIEW2: Trump Stagflationary For Eurozone-ECB's Wunsch)
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