Lagarde Says ECB Will Observe FX Movements, Won’t Directly Intervene

It is a pleasure to return to this Committee for our regular dialogue. Let me start with a solemn reminder that this week marks four years since Russia launched its unjustified aggression against Ukraine. Our thoughts are with the Ukrainian people, who continue to endure immense suffering, and we stand in full solidarity with all those affected by this war. The euro area has faced an exceptionally challenging environment over recent years, with high inflation affecting both households and firms. We can now see, however, that our efforts to bring inflation down have been effective. Inflation has fallen markedly from its peak of 10.6% in October 2022. It fluctuated in a narrow range around 2% in the second half of last year and stood at 1.7% in January. The ECB’s decisive monetary policy response played a crucial role in bringing inflation back to target. However, even though inflation has declined, surveys show that many citizens still perceive prices to be ECB’s Lagarde: Inflation Expected to Stabilize at 2% Target in Medium Term Lagarde Says Food Inflation Likely to Decline and Settle Just Above 2% by End of 2026 Lagarde Says Growth Expected from Strong Labour Market and Spending on Defence, Infrastructure, and Digital Sectors

Oman: We've finished the day of US-Iran talks. Talks made significant progress. Oman: US-Iran talks will resume soon after consultations.

Just in | IMF Report: US Job Growth Predicted to Fall Below Pre-Pandemic Levels Amid Slowing Population Growth. Just in | IMF Review Projects US Core Personal Consumption Expenditures to Hit 2% by Early 2027 United States of America: Staff Concluding Statement of the 2026 Article IV Mission U.S. policymakers have embarked on a systemic reorientation of the U.S. economy with the overarching goal to increase economic self-reliance and, in doing so, to boost the living standards of American workers. This has manifested in efforts to increase domestic manufacturing capacity; reduce the trade deficit and the U.S.’s reliance on foreign-produced goods; increase domestic energy output; reduce the reliance on unauthorized immigrant workers; and reduce the federal government’s role in the economy. The 2026 Article IV consultation focuses on the macroeconomic effects of the shift in policies undertaken in 2025 and their impact on the U.S., on trading partners, and on the global economy more broadly.