German IFO President Fuest out with a few thoughts 7 July

Report courtesy of our good friends at Livesquawk.

  • early 2018 would also be alright since ECB has committed itself until year-end
  • concern is not overshooting inflation but rather the effect stimulus has on financial stability
  • doesn't mean interest rates must rise immediately, but one "shouldn't push the gas pedal all the way down anymore"
  • ECB should communicate its future policy path, expects guidance to come soon

Fuest says inflation certainly linked in part to wage growth, but "skeptical" about need to raise wages across the board; wages need to grow in areas where workers are in demand

  • debate about ECB Executive Board succession shouldn't be so focused on nationality.

More ECB tapering talk. Who's next up to the rostrum?

EURUSD suitably unfazed with more important real issues at hand such as NFPs and large 1.1400 option expiries.

IFO's Fuest - Time to taper ?