In an interview with the FT here (may be gated), she warns that it is too early for the Fed to stray away from its recent policy stance and call victory in the fight against inflation. She also urges the central bank to move forward with more rate hikes this year, arguing that "if you look at very sticky components of inflation like services inflation, I think it’s clear that we haven’t turned the corner yet on inflation".
As for Europe, she expects the tightening cycle to be more prolonged compared to the US as policymakers will struggle in dealing with the energy crisis in the region. Adding that "(we) are looking well into 2024 before we start seeing inflation coming closer to the ECB’s target".
