- Risks of exiting from loose policy too late more dangerous than too early
- Waiting too long can de-anchor inflation expectations
- Inflation risks low, so loose policy is appropriate
- Rates should rise before phasing out all non-standard measures
- ECB cannot provide solutions to dependent banks; governments, shareholders responsible
EUR/USD is firm as Weber sounds a very Germanic tough love note to a group in New York. Trichet addresses the same group later. Keep in mind, Weber is more hawkish than most on the ECB board and has been opposed to buying bonds from the very beginning, a stance that may keep him from replacing Trichet when his term is over next year.
