IMF Managing Director Christine Lagarde has been nominated\nto replace Mario Draghi as new president of the European Central Bank.<\/p>\n\n\n\n
The head of the International Monetary Fund (IMF) has been a\nmajor supporter of the adjustment policy to help the eurozone recover from the\nglobal financial crisis and the ensuing eurozone debt crisis. The euro’s\noverall movement fell sharply as traders expected that the ECB, managed by\nLagarde, would stick to the very low interest rate policy prevailing in\nDraghi’s era.<\/p>\n\n\n\n
After months of uncertainty, clarity emerged as to who would\nbe the next ECB president. With German Chancellor Angela Merkel using her\ndeclining political capital to nominate German Defense Minister Ursula von der Leyen\nto become the next president of the European Commission, France, the second\nlargest economy in the eurozone, was able to put someone among the leaders of\nthe most important organization in the European Union and in perhaps the most\nimportant job in all Europe: the presidency of the European Central Bank.<\/p>\n\n\n\n
The next ECB President is … Christine Lagarde<\/strong><\/p>\n\n\n\n Former French finance minister and current managing director\nof the International Monetary Fund and President Christine Lagarde have been\nappointed to replace Mario Draghi as new president of the European Central\nBank. The move is a complete surprise for market participants, who hadn\u2019t\nexpected Lagarde to be one of the key contender to succeed Draghi as new\npresident of the European Central Bank.<\/p>\n\n\n\n How will Lagarde affect the ECB’s policy?<\/strong><\/p>\n\n\n\n Although the nomination does not guarantee the post, all\nreferences point to Christine Lagarde taking over the ECB presidency. In recent\nmonths, as IMF director and president, Lagarde has lowered the IMF’s global\ngrowth forecasts, describing the situation as a “delicate moment” for\nthe global economy. It\u2019s fairly simple to understand that they are talking\nabout collateral damage to the American-Chinese trade war.<\/p>\n\n\n\n To this end, as euro zone growth slows and inflation\nexpectations fall, Lagarde appears to be preparing to take the ECB presidency\nover from Draghi and continue the policy of very low rates and asset purchases\nif required (Draghi has talked about further stimulus in recent weeks). Because\nof the lack of financial reform over the past few years, Lagarde is aware that\nthe ECB should continue to use stimulus. Accordingly, any hopes that the next\nECB President will end the era of adjustment policies have dissipated.<\/p>\n\n\n\n In the midst of a wave of nominations for the next category\nof EU leaders, the euro has fallen rapidly from its daily highs. The EUR \/ USD\ndropped from 1.1312 to a low of 1.1292 in 15 minutes, before rebounding to\n1.1301 so far. Elsewhere, as US equity markets pressured and US Treasury yields\nfell, the JPY managed to benefit from a shift in news, as the EUR \/ JPY hit its\nlowest level the day after the reports.<\/p>\n","protected":false},"excerpt":{"rendered":" IMF Managing Director Christine Lagarde has been nominated to replace Mario Draghi as new president of the European Central Bank. The head of the International Monetary Fund (IMF) has been a major supporter of the […]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":1267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[28,27,52,69,50,77,36,34,114,109,121,39,81,115],"_links":{"self":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1266"}],"collection":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/comments?post=1266"}],"version-history":[{"count":1,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1266\/revisions"}],"predecessor-version":[{"id":1268,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/posts\/1266\/revisions\/1268"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media\/1267"}],"wp:attachment":[{"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/media?parent=1266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/categories?post=1266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skyeconomynews.com\/wp-json\/wp\/v2\/tags?post=1266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}