Online Reporter
Christine Lagarde is about to face scrutiny on her commitment to keep leading the European Central Bank, not least as she nears the milestone of having just about tamed inflation.
The president, who will hold a press conference today to present the Governing Council’s latest policy decision, has been courted for the top job at the World Economic Forum in Switzerland, even though her term in Frankfurt officially lasts for another 2 1/2 years.
It’s not unprecedented for those in her position to get quizzed on such matters by reporters, as happened with her predecessor Mario Draghi when speculation arose that he might become Italian head of state. Even so, such queries would highlight just how much Lagarde finds herself at a crossroads at present.
Alongside a widely expected eighth cut in borrowing costs, the ECB chief will unveil new forecasts for consumer prices that are likely to show them at target in the medium term after inflation slowed to 1.9 percent in May, below the 2 percent goal for the first time in eight months.
That achievement could work in the WEF’s favour: The Financial Times reported last week that returning price stability to the euro zone was one criteria Lagarde would want to meet before taking the job in Geneva. The same article cited WEF founder Klaus Schwab as saying that she in early April had discussed cutting short her term to succeed him as chairman. — Bloomberg
