Mario Draghi Presides Over His Final ECB Meeting
Draghi's watch is ending
ERIC PIERMONT/AFP via Getty Images
• less than 3 min read
Next Friday, she gets the scariest job of all when Mario Draghi ends his eight-year term as European Central Bank (ECB) president. Draghi helmed his final policy meeting yesterday.
What's on Lagarde's to-do list? Heading off a recession even as the EU’s most powerful economy, Germany, is sending signals it may already be in one.
The backstory: In September, the ECB approved Draghi’s plan to juice the European economy by dropping interest rates further into the negatives and resuming monthly bond purchases of 20 billion euros.
- The plan’s split the ECB. Some officials think it was sprung on them without enough time to deliberate; others fear it’s venturing into dangerous negative rate territory.
Draghi’s watch may be ending on a sour note, but his “whatever it takes” attitude in 2012 steered the eurozone out of a financial crisis.
Looking ahead...Lagarde, the former IMF head, will review the ECB’s target numbers (like close to 2% inflation) and chart the best path to get there.
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