ECB and Euro Area Economy Monitor - 2025-01-29

Another rate cut from the ECB while the Fed stands pat. Remarkably, the ECB believes now that it will hit its 2% inflation target this year, even as the Fed continues to defer its estimates of when ultimate victory will be achieved. Of course neither central bank has any idea what causes or cures inflation. They just extrapolate the last couple months of data, to be frank about it. Europe's last couple months look better than the US's. So that's that.