Central Banks Must Tighten Policy Even Into a Recession, ECB’s Schnabel Says

Central Banks Must Tighten Policy Even Into a Recession, ECB’s Schnabel Says
Isabel Schnabel in Frankfurt, Germany, on Nov. 22, 2019. Ralph Orlowski/Reuters
Reuters
Updated:

JACKSON HOLE, Wyo.—Central banks around the world risk losing public trust and must now act forcefully to combat inflation, even if that drags their economies into a recession, European Central Bank board member Isabel Schnabel said on Saturday.

Inflation is close to double-digit territory in many of the world’s top economies and any decline is likely to be slow, keeping prices above central bank targets for years to come.