Economics

A New Inflation Era Leaves Powell and Lagarde Seeking Answers 

  • Central bankers acknowledge just how far the world has changed
  • ‘We’re learning to deal with it,’ Powell tells ECB’s forum
WATCH: ECB President Christine Lagarde in Sintra, Portugal. Source: Bloomberg
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The central bank chiefs of the US and the euro zone shared their doubts that the low-inflation environment before the coronavirus will ever return, a shift leaving them searching for answers as interest rates rise.

“Since the pandemic, we’ve been living in a world where the economy has been driven by very different forces,” Federal Reserve Chair Jerome Powell said on a panel moderated by Bloomberg Television’s Francine Lacqua.