Barkin from Fed and EBC members commented on monetary policy

Thomas Barkin, head of the Richmond Fed:

• Labor shortage has fueled inflation. It looks like the labor supply will still remain limited;
• Fewer workers would limit U.S. economic growth;
• High savings by U.S. households are hampering the Federal Reserve's work;
• The Fed has made clear its plan to do more on inflation;
• Trying to bring demand back into balance will not be easy, especially with a surplus of household savings and fiscal stimulus.

Joachim Nagel, head of the Bundesbank:

• Quantitative tightening (QT) should take place from the first quarter of 2023;
• The ECB has several safeguards in place for QT. Markets are resilient enough to cope with it;
• Rolling over APP bonds is the best option for QT.

Lusi de Guindos, ECB vice president:

• We see that inflation is starting to slow down. Inflation will be softer in Q1;
• The economic slowdown will not be as deep as expected a few weeks ago;
• High probability of recession in the Eurozone;
• Inflation at current levels will continue for 3 or 4 months;
• Eurozone inflation in mid-2023 will hover around 7%.