The ECB Has More at Play — and Risk — Than the Fed

It’s Hard To Be Lagarde...

Thursday brings the spotlight to Europe, and what could be a historically consequential meeting on monetary policy by the European Central Bank. It’s going to raise rates. But there is now some question over how much — 25 or 50 basis points? And the constraints have never looked tighter.

We all know that the world as a whole suffered from a pandemic, and is now suffering inflation in its aftermath. But the ECB has to deal with three pressures that don’t affect the Federal Reserve.