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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: Right now, let's sit down to Bloomberg's Washington, DC Bureau.

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Speaker 2: European Center Bank President Christine Leguard speaks exclusively with Bloomberg

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Speaker 2: TV's Francine LACOI.

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Speaker 1: Let's listen in.

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Speaker 2: So your focus is on inflation, on data, is on Europe.

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Speaker 2: Is there anything to be alarmed about what's happening in

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Speaker 2: Europe economically?

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Speaker 3: Well, first of all, very nice to be here with you, Fasin,

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Speaker 3: and with all of you here. So what in my

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Speaker 3: position as head of the European Central Bank, what I

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Speaker 3: focus primarily on is prices, price stability, inflation and how

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Speaker 3: it's evolving over the course of time.

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Speaker 1: At the moment, we are not totally unhappy.

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Speaker 3: With what we see because it looks very much that

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Speaker 3: inflation is on the right track. Of these inflation you know,

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Speaker 3: we come from very high numbers, as high on average

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Speaker 3: for the whole of the UR area as ten point

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Speaker 3: six percent, and the latest reading we had for the

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Speaker 3: inflation in September was one point seven So you know,

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Speaker 3: those those numbers are relatively reassuring. They are only a number,

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Speaker 3: and we are not looking at one data point, as

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Speaker 3: I have said repeatedly. We're looking at a lot of

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Speaker 3: data to make sure that this disinflationary process continues to

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Speaker 3: be to be well on track. But you know, we

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Speaker 3: also have to be cautious, and you know, we cannot

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Speaker 3: jump to conclusion that, Okay, done deal, we've broken the

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Speaker 3: neck of inflation.

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Speaker 1: No, And I think caution.

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Speaker 3: Leads us to look at all the data that are

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Speaker 3: coming in whichever form it takes, whether it's survey indicators

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Speaker 3: as we had a lot of that in September, or

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Speaker 3: whether they are more model derivated, as when we have

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Speaker 3: projection exercises, and we will be looking at that and

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Speaker 3: continue to be data dependent. But of course courses are

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Speaker 3: not jumping to conclusions.

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Speaker 2: So when you look at inflation, could it actually could

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Speaker 2: you achieve your target a little bit earlier than expected?

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Speaker 1: That would be my hope. You know, if.

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Speaker 3: Our target is two percent medium term, and I'm absolutely

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Speaker 3: confident that we will reach that target sustainably in the

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Speaker 3: course of twenty twenty five, is it going to be

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Speaker 3: early in twenty twenty five, is it going to be

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Speaker 3: very late in twenty ten to twenty five. I think

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Speaker 3: really will be determined by data, by the state of

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Speaker 3: the economy, by energy prices, by the transmission. You know,

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Speaker 3: we look at three components. We look essentially at inflation outlook,

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Speaker 3: we look at underlying inflation, we look at transmission of.

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Speaker 1: Our monetary policy.

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Speaker 3: And on the basis of that sort of three pillar analysis,

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Speaker 3: we can assess whether we are definitely on track. And

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Speaker 3: when do you think it's a little bit sooner?

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Speaker 2: I mean, so we of course have Bloomberg look at

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Speaker 2: every single word.

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Speaker 1: No, I know, so I'll be quite not.

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Speaker 2: First quarter or second quarter? Or is it just too soon?

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Speaker 3: I think it's too soon to say, because I wouldn't

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Speaker 3: be loyal to our principle of data dependency if I

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Speaker 3: was to tell you it's going to be on such

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Speaker 3: time in the course of twenty five. I think we

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Speaker 3: all governors of the Governing Council, and I'm sure you

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Speaker 3: will be hearing lots of them in the next few

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Speaker 3: days because they will be on air very much. I

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Speaker 3: think we are all confident that twenty five is the

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Speaker 3: year when we reach our target on a sustainable basis

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Speaker 3: and with the medium term caveat that I have mentioned.

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Speaker 3: But we have to be attentive to everything. We have

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Speaker 3: energy prices that are low at the moment relative to

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Speaker 3: where they could be. We have services going slightly down,

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Speaker 3: but not much. We are still at three point nine

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Speaker 3: percent in the last reading. And we have to pay

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Speaker 3: attention to domestic inflation. That is the segment of inflation

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Speaker 3: that is proving resistant.

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Speaker 1: And domestic inflation is largely based on services.

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Speaker 3: Services, It itself largely labor intensive, and we have to,

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Speaker 3: as I said several times, we have to be very

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Speaker 3: sharp in our analysis of the nexus between wages, profit

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Speaker 3: and productivity. That three pillar platform will be very indicative

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Speaker 3: of where services prices, which will inform domestic inflation.

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Speaker 2: You can have a situation where not all inflation indicators

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Speaker 2: fall at the same time in the next couple of months.

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Speaker 2: Would you still feel comfortable if only some of them

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Speaker 2: reach two percent with the trend going that way?

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Speaker 3: You know, if you want to have an average of

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Speaker 3: two percent, and you know that, for instance, the inflation

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Speaker 3: of goods at the moment, at least based on the

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Speaker 3: information we have is point four. By necessity, you will

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Speaker 3: have other components of your inflation measurements which are higher

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Speaker 3: than two percent. Because we think in terms of you know,

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Speaker 3: average number based on the proportion of products services in

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Speaker 3: the in the inflation basket, if you want to call

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Speaker 3: it that way. So not all elements will have to

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Speaker 3: be at two percent. We will need to have headline

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Speaker 3: inflation at two percent. That's the target that we have

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Speaker 3: set for ourselves. But when you have a point, I

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Speaker 3: think is we need to be as granular as we

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Speaker 3: can in the analysis of inflation of services because that

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Speaker 3: is the one that is tricky and resistant, and we

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Speaker 3: have to pay attention to what is sort of structural,

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Speaker 3: what results from latest developments, What those latest developments indicate.

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Speaker 3: Are those elements sort of what we call late commerce.

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Speaker 3: For instance, if you think in terms of insurance, insurance

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Speaker 3: generally is the premiums are renewed on an annual basis.

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Speaker 3: Those are the ones that we call late commers, because

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Speaker 3: they will increase their prices at the end of the year.

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Speaker 3: We need to do the same analysis with wages. The

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Speaker 3: beauty of Europe is that it is diverse, right, Okay.

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Speaker 3: In some countries they renew the collective bargaining agreement on

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Speaker 3: an annual basis, so there is a relative regularity in

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Speaker 3: the increases.

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Speaker 1: In other countries they.

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Speaker 3: Will renew the collective bargaining agreement every.

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Speaker 1: Two or three years, and there is a catch up element.

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Speaker 3: So we have to really we have to do that

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Speaker 3: granular analysis which will inform where it's coming from, how

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Speaker 3: long it's been in the making, what is the catch

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Speaker 3: up element about it, and how lasting it is.

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Speaker 1: For the future.

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Speaker 3: So we need to look at information from the past

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Speaker 3: which is relatively stable, to see how it informs our

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Speaker 3: assessment of the future.

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Speaker 1: We do all that.

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Speaker 2: So if you look at the economic blueprint that we're

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Speaker 2: seeing for the moment in Europe, so inflation is coming down,

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Speaker 2: wages are arising, the economy seems to be holding up,

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Speaker 2: but what's happening with consumers?

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Speaker 1: I would qualify one.

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Speaker 3: I agree with you, maybe except on wages, because I

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Speaker 3: think that wages is at a bit of a pivotal

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Speaker 3: moment where and it goes back to my granular assessment.

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Speaker 3: If you look at compensation per employee, it is beginning

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Speaker 3: to go down a bit. If you look at negotiated wages,

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Speaker 3: depending on whether you include the one off payment catching

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Speaker 3: up or not. It's also moving in the direction of

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Speaker 3: lower growth than what we have seen. So that leads

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Speaker 3: us to think that this wage increase that could have

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Speaker 3: led to second round inflation is probably beginning to abate now.

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Speaker 3: But coming back to you, you consumer point that that's

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Speaker 3: a really interesting.

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Speaker 1: European phenomenon. I think our.

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Speaker 3: Narrative, the narrative that we gave in September, which is

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Speaker 3: the fact that recovery will be driven by consumption because

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Speaker 3: the real income that households have or that corporates have

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Speaker 3: to invest has improved over the course of time.

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Speaker 1: That still holds.

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Speaker 3: The timing of that is being extended. And the European

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Speaker 3: consumers certainly in general, do not have the same propensity

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Speaker 3: to consume.

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Speaker 1: Than the US consumers.

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Speaker 3: And it's often said that, oh, as long as the

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Speaker 3: US consumers consume, the economy will do fine. The European

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Speaker 3: consumers are not on the same page of active consumption,

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Speaker 3: I would say, And if I look at Q two,

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Speaker 3: consumption has actually gone down a bit, although real income

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Speaker 3: disposable income had increased, and saving in Q two again

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Speaker 3: had increased. So it's as if, on average, the European

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Speaker 3: consumer was sitting there looking at his real income increasing,

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Speaker 3: looking at the world out there, looking at the war

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Speaker 3: at the doorstep of Europe, looking at developments in the

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Speaker 3: Middle East, looking at the political uncertainty around and thinking well,

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Speaker 3: I might be better off saving a bit more, and

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Speaker 3: who knows, I might cut a good deal with my

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Speaker 3: bank because the banks are still offering not generous, but

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Speaker 3: possibly attractive rates for time deposits. Rather than consume, consume, consume.

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Speaker 2: Do interest rate cuts help with that?

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Speaker 1: Do they?

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Speaker 2: Should they actually? Or is it transmission mechanism taking longer

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Speaker 2: than expected?

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Speaker 1: I don't think so. I think. I think gradually.

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Speaker 3: Reduced interest rates are being transmitted, and our monetary policy

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Speaker 3: is traveling to financing, to the activity, and ultimately to inflation.

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Speaker 3: So it should It should the encourage spending, whether by

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Speaker 3: we have consumption or investment. But on investment we're not

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Speaker 3: seeing much at the moment.

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Speaker 1: Either.

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Speaker 2: Are you expecting it to pick up or are there

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Speaker 2: are particularly weak countries that give you worries.

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Speaker 3: There are countries that currently are not performing spectacularly.

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Speaker 2: When are you expecting them to pick up again?

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Speaker 3: Well, I think a revision of the business model and

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Speaker 3: a collective endeavor to to to support the economy would

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Speaker 3: be helpful, including you know, public spending.

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Speaker 2: But there's no real sign of that coming in some

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Speaker 2: of these countries.

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Speaker 1: Well, Necessity Floire, I don't know how you translate.

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Speaker 2: That necessity usually leads to something. The overarching point let

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Speaker 2: me madame aguein when you look at monetary policy. So

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Speaker 2: the markets really expect quite a lot of incremental interest

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Speaker 2: rate cuts until April? Are they right?

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Speaker 3: It's you know, it's their analysis. As I said, inflation

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Speaker 3: dese inflation well on track? Have we broken the neck

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Speaker 3: of inflation?

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Speaker 1: Not yet?

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Speaker 3: Should we jump to conclusion or should we not be

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Speaker 3: a bit cautious and as data dependent as we have

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Speaker 3: committed to be?

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Speaker 1: I think is our determination.

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Speaker 3: Markets have their own way of looking at things, and

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Speaker 3: they you know they have They're playing with other people's money,

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Speaker 3: and the more they make, the better, I guess.

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Speaker 1: So my objective is price stability markets.

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Speaker 2: I mean, markets could derail a bit of of of

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Speaker 2: that if they mispriced things. Do you just ignore markets

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Speaker 2: or do you try?

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Speaker 3: And no no, I don't no, no, no, no, no, We

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Speaker 3: don't ignore anyone. We look at what colleagues do around

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Speaker 3: the world, what impact it has on us. By necessity,

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Speaker 3: we have to factor in our models what markets anticipate

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Speaker 3: in terms of rate curve and and but it's not

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Speaker 3: to say that we are market dependent, far from it.

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Speaker 3: But it's it's it's a component that we have to

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Speaker 3: that we take into account.

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Speaker 2: What would it take you to do fifty bases point cuts?

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Speaker 1: I don't want to speculate.

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Speaker 3: I think the I think for me, the direction of

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Speaker 3: travel is clear and what what we have done, you know,

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Speaker 3: starting in June is I think the sensible approach and

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Speaker 3: one that we that should be continued with that caution

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Speaker 3: element about it. Not jumping to the conclusion that, oh,

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Speaker 3: because we've done twenty five, will do twenty five in

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Speaker 3: each and every time. No, or because we think that

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Speaker 3: it is going to be done or up this will

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Speaker 3: do fifty. I think that's you know, that's not called

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Speaker 3: for given how we are trying to really be solid

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Speaker 3: in our analysis and be both data dependent but also

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Speaker 3: applying judgment and trying to look forward.

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Speaker 1: And we need.

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Speaker 3: To scrutinize and be as granular as we can because

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Speaker 3: we are getting closer to the point where hopefully the

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Speaker 3: economic situation will be in the right equilibrium.

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Speaker 1: But to jump to conclusions and to you know, you will.

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Speaker 3: Have people the whole week saying, oh, it should be fifty,

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Speaker 3: it should be twenty five inches. No direction of travel

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Speaker 3: clear pace to be determined on the bays of backward

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Speaker 3: and forward looking element, using the three criterias and applying judgment.

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Speaker 3: I think that's how I see it. But it's a

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Speaker 3: collective endeavor in Europe.

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Speaker 1: You know.

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Speaker 3: I'm lucky to have plenty of very smart governors around

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Speaker 3: the table and my executive board members.

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Speaker 2: Everybody has a few everybody does have a view. When

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Speaker 2: is the right time to start thinking about being less accompositive.

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Speaker 2: I don't know how often you can ask about the

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Speaker 2: neutral rate.

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Speaker 3: It just gets very often and invariably. I don't know,

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Speaker 3: because it's that it's not an elusive concept, but it's

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Speaker 3: one that is first of all, pretty complicated to articulate,

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Speaker 3: and that there is based on multiple factors including productivity, aging, the.

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Speaker 1: Impact of climate change, and all the rest of it.

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Speaker 3: So if you were to ask me today, where is it,

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Speaker 3: the honest an sways, I don't know. I think fair

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Speaker 3: to say and credit to the research of the CB,

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Speaker 3: which is not the line adopted by either myself, the

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Speaker 3: Executive Board or the Governing Council. But I think their

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Speaker 3: conclusion is that it's going to be lower than where

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Speaker 3: it is today, and it's probably going to be higher

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Speaker 3: than where it was anticipated to have been prior to COVID,

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Speaker 3: So anywhere in between.

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Speaker 2: That's a big rains.

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Speaker 3: I know it's a big range, but it's it's it's

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Speaker 3: not like a mirage, but it's something that you can see,

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Speaker 3: perceive and identify the closer you are to that element

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Speaker 3: because it's you know, it's it's an equilibrium where you

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Speaker 3: have the perfect economic conditions. Employment at at potential, growth

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Speaker 3: at potential. We have to but we are not there

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Speaker 3: for sure, and we are still restrictive and will continue

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Speaker 3: to be for as long as it's needed to get

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Speaker 3: to that point.

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Speaker 2: I know that your mandate is on inflation, but we

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Speaker 2: had the drug Ey Report of Competitiveness. It was pretty old.

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Speaker 1: Drug is former presidency.

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Speaker 2: So he comes into your ear, your fault. I mean

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Speaker 2: he was pretty alarming actually in what Europe needs.

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Speaker 3: No, I think that he was alarming in his diagnosis

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Speaker 3: of where Europe is at, and I think I said

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Speaker 3: he was. It was alarming and fail or just I

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Speaker 3: forgot what I used, because I think that he has

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Speaker 3: conducted in his position as retired President of the CB,

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Speaker 3: retired governor of the Banca Italia, retired Prime Minister of Italy.

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Speaker 3: He had this sort of paramount vision, holistic vision, if

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Speaker 3: you will, of how Europe functions, what's missing, where are

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Speaker 3: the gaps? And he had, you know, a great team

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Speaker 3: of economists and other experts who helped him and fielded

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Speaker 3: his considerations and thinking, which is why I think his

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Speaker 3: diagnosis is severe, but just is suggestions for the future

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Speaker 3: in terms of what needs to change, what needs to

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Speaker 3: be done, what reforms must take place. This is not

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Speaker 3: alarming or unless you say alarming, because he set the

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Speaker 3: alarm bell saying now is the time to get on

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Speaker 3: with it, please, And he's better equipped than anybody else

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Speaker 3: to do that because he's been there, has done it,

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Speaker 3: He's seen the procrastination in play in those European Leaders

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Speaker 3: Council meetings, and I think he's I really like his report.

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Speaker 3: I don't agree with everything that he says, and I

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Speaker 3: think that our job now, and the job of the

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Speaker 3: Commission and the job of the European leaders is to

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Speaker 3: filter out what can be done expeditiously without bumping into

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Speaker 3: resistance and obstacles and territorial wars and turf discussions, to

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Speaker 3: move the needle and to make sure that both on productivity,

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Speaker 3: whether there's a huge big lag on a better energy sovereignty,

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Speaker 3: on the fluidity of a labor factor and capital there

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Speaker 3: is real progress for my money. You know, in my position,

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Speaker 3: I would want those three components to really be addressed

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Speaker 3: because it would make a difference for the fact that

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Speaker 3: we have against inflation.

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Speaker 2: I mean, there are a couple of I guess concrete points.

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Speaker 1: Right.

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Speaker 2: There's a huge cross border possible banking merger that could

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Speaker 2: or couldn't happen. He mentioned, you know, the joint issuance

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Speaker 2: of view bonds.

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Speaker 3: What would make you know what he said on the

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Speaker 3: latter point, because it's a controversial one. Yes, basically the

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Speaker 3: issuance of European bonds. We did it once with COVID,

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Speaker 3: and you have a whole bunch of European leaders who say,

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Speaker 3: oh it was one shot deal with not never again.

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Speaker 3: So it's a highly controversial element of his report, which

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Speaker 3: is why it's being picked up by media and others.

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Speaker 3: He himself said at the Brugal Institute, which is pretty

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Speaker 3: thorough and deep into these matters, he said, you can

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Speaker 3: read my report, take my report, move on with it

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Speaker 3: and take ownership without that chapter, forget about the debt issue.

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Speaker 3: And so if it's going to be a battle between

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Speaker 3: the Nordic and the Southeast, and forget about that, but

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Speaker 3: do the rest.

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Speaker 1: I think he's right.

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Speaker 2: Would you be in favor of bank consolidation to almost

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Speaker 2: you know, signal that actually Europe means that two.

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Speaker 3: Particular I think productivity is the key, the key battle,

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Speaker 3: but it's not directly related to what we do. That

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Speaker 3: what is directly related to what we do because of

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Speaker 3: monetary policy transmission notably, and because of the financial stability,

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Speaker 3: without which price stabilities will be an illusion is number

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Speaker 3: one capital market union and banking union. Banking union. You

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Speaker 3: can think of three pillars. Two have been built and

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Speaker 3: the third one is missing. So that's what you know.

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Speaker 3: The edis, which is the European Deposit Insurance Scheme does

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Speaker 3: not exist yet, so every country is on its own

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Speaker 3: and that needs to be addressed. My colleague archaem Nagel

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Speaker 3: actually this morning committed a nice OpEd on that, and

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Speaker 3: I'm delighted that he did. And capital market union, you

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Speaker 3: know we have in some areas, you know, post market infrastructure,

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Speaker 3: we have twenty seven different backbone that doesn't work or it.

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Speaker 1: Does no, no, I shouldn't say it.

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Speaker 3: Works, but it works. It is suboptimal by long by

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Speaker 3: a long way. And one of the strength of the

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Speaker 3: US market has to do with the capital market that

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Speaker 3: is vibrant, deep, liquid, and I think much more easily

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Speaker 3: accessible than it is in Europe.

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Speaker 2: It is the I guess, the window for Europe to

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Speaker 2: get its act together narrowing. I mean we also sit

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Speaker 2: if you're a European between the US and China the IMF. Also,

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Speaker 2: you could argue.

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Speaker 1: That it's a strategic place.

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Speaker 3: To be in as long as as long as it

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Speaker 3: is solid and strong enough to stand with its own

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Speaker 3: sovereignty and its ability to keep.

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Speaker 1: The savings at home. That's one example.

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Speaker 3: There is so much European savings that travel the world

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Speaker 3: because they don't have an instrument or a market in

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Speaker 3: which to invest.

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Speaker 2: But what are you optimistic about going forward? I know

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Speaker 2: there's you know, we talk a lot about terroriffs, we

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Speaker 2: talk a lot about trade also being rebuilt now because

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Speaker 2: of geopolitics instead of economic advantage. That must make it

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Speaker 2: harder for Europe.

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Speaker 3: Well, first of all, there is a lot of trade

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Speaker 3: that takes place within Europe. It's not necessarily well accounted for,

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Speaker 3: but there's a lot of good services movement within Europe

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Speaker 3: that can be improved significantly. And you need to look

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Speaker 3: at the LITA report in addition to the Drug Report

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Speaker 3: and recall it a from a Prime minister as well

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Speaker 3: makes the case for better European integration. Remove some of

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Speaker 3: the obstacles, do away with some of these multiple licenses

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Speaker 3: to operate, the prior authorization here, prior authorization there, and

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Speaker 3: have a real integrated deep market one of the largest

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Speaker 3: in the world. But we just we keep procrastinating about

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Speaker 3: little boundaries everywhere. So that integration will increase, in my view,

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Speaker 3: the trade that is within Europe, and I think it

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Speaker 3: will also encourage investment in Europe because investors look at

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Speaker 3: the general terms the tax regime, but they look first

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Speaker 3: and foremost what is the market where will I sell?

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Speaker 1: Is there? Deep? Is there?

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Speaker 3: Deep and wide market? What scale can I get as

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Speaker 3: a result of my investment. So I think that a

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Speaker 3: lot is in our hands. I don't like restrictions to trade.

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Speaker 3: I'm a former trade secretary for my country in France,

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Speaker 3: and I just know how much trade can bring in

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Speaker 3: terms of competition, in terms of added innovation, in terms

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Speaker 3: of elasticity. I think trade is helpful, but the trade

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Speaker 3: conditions have to be fair. They cannot be constantly subsidized

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Speaker 3: in a very or pack and.

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Speaker 1: Unfair way. I was going to.

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Speaker 2: Ask you as so. We recently had in view with

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Speaker 2: a US presidential candidate who said tariffs was his favorite word.

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Speaker 2: I imagine because of also your background, former IMF, former

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Speaker 2: trade minister, this is not your favorite word. What is

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Speaker 2: your favorite word?

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Speaker 3: I think fair trade is a key boost for growth,

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Speaker 3: for employment, for innovation, for productivity, and I would say

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Speaker 3: that it's something that we should not throw away because

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Speaker 3: in any period of time where this country, the United States,

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Speaker 3: has thrived, we're periods of trade, not periods of I'm

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Speaker 3: going to retire behind my boundaries and play at home.

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Speaker 2: I mean, there was a big UK media outlet that

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Speaker 2: called the US economy the greatest economy on Earth? Right now?

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Speaker 2: Would you agree with that? Where does it leave the

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Speaker 2: rest of the world.

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Speaker 3: I think it depends where you are on the social ladder.

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Speaker 3: I think you have to go further than look at

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Speaker 3: the you know, the sort of aggregate numbers are the

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Speaker 3: average numbers. It depends on where you're on that line.

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Speaker 3: If you are at the bottom of the ladder, if

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Speaker 3: you are if you have a small job, not much

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Speaker 3: by word of income. I'm not sure that you think

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Speaker 3: of you being in the first and best economy in

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Speaker 3: the world. So everything needs to be considered. But it's

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Speaker 3: a case that the US, for instance, has very high productivity,

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Speaker 3: has a very vibrant tech sector, and has had it

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Speaker 3: for a long time, so it has capitalized on it

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Speaker 3: since the beginning of the twenty first century, and that

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Speaker 3: there is a lot of catch up taking place at

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Speaker 3: the moment. But I think you cannot look at that

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Speaker 3: in isolation. You have to look also at the people.

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Speaker 3: And I think if you look at the genico efficient,

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Speaker 3: which is probably not the best way to measure inequality,

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Speaker 3: the US is not.

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Speaker 1: Doing so well from that perspective.

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Speaker 3: So it's also a question of spreading and distribution so

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Speaker 3: that all people can benefit.

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Speaker 1: Sorry I'm being political, Now forget it.

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Speaker 2: Do you worry about central banks being political or being

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Speaker 2: dragged into the political sphere.

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Speaker 1: No, because I think there is a huge.

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Speaker 3: Resistance to that in the decisions that we make, despite

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Speaker 3: what is being suspected here or there.

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Speaker 1: In any you know, place in the world.

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Speaker 3: And I think for those central banks which have the

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Speaker 3: privilege of independence either by virtue of the treaties or

439
00:25:25,240 --> 00:25:29,320
Speaker 3: the tradition. It's critically important to hang on to it

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Speaker 3: and to and to defend it because the credibility of

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Speaker 3: an institution like a central bank really is a factor

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Speaker 3: of how independent it is visibly the politics.

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Speaker 1: And it's precious, It's very precious.

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Speaker 2: But do you think that that you'll come under attack

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Speaker 2: more not you personally, but just central banks. Donald Trump

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Speaker 2: said J. Powell had the easiest job because it's a

447
00:25:52,760 --> 00:25:55,840
Speaker 2: flip of a coin every every every month.

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Speaker 1: He should come and visit us.

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00:25:59,040 --> 00:26:02,960
Speaker 3: And you know I have I have thousands of hard

450
00:26:03,000 --> 00:26:10,399
Speaker 3: working people, economists, jurists, computer scientists, and I can assure

451
00:26:10,400 --> 00:26:13,760
Speaker 3: you that they work super hard every day, not just

452
00:26:13,840 --> 00:26:20,520
Speaker 3: once a month, and they are extremely conscientious and determined

453
00:26:20,560 --> 00:26:23,159
Speaker 3: to really do the best job they can to deliver

454
00:26:23,880 --> 00:26:27,800
Speaker 3: the right monetary policy and secure what is our common good,

455
00:26:27,880 --> 00:26:31,000
Speaker 3: which is our currency. So we defend the euro, and

456
00:26:31,040 --> 00:26:33,480
Speaker 3: we fight for the euro, just as the Fed defends

457
00:26:33,560 --> 00:26:36,080
Speaker 3: the dollar. It's for the dollar. I'm sure I don't

458
00:26:36,119 --> 00:26:38,080
Speaker 3: want to speak for J. Powell, but I'm sure that's

459
00:26:38,119 --> 00:26:39,080
Speaker 3: how he sees his job.

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00:26:39,840 --> 00:26:42,560
Speaker 2: Where do you we're just kicking off imfrol banquet? What

461
00:26:42,560 --> 00:26:43,720
Speaker 2: are you most looking forward.

462
00:26:43,520 --> 00:26:48,399
Speaker 3: To, Oh, seeing my friends, that's the first one. And

463
00:26:48,440 --> 00:26:50,840
Speaker 3: I'm not saying that just jokingly. I think that there

464
00:26:50,920 --> 00:26:55,440
Speaker 3: is huge value in meeting people who are equally concerned,

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00:26:55,480 --> 00:26:58,480
Speaker 3: who have the common good at heart, and who will

466
00:26:59,119 --> 00:27:02,000
Speaker 3: you know, inform each other of where they see things,

467
00:27:02,320 --> 00:27:06,359
Speaker 3: what obstacles they are, how we can better cooperate. And

468
00:27:06,440 --> 00:27:09,480
Speaker 3: it's some people say, oh, it's a big talking talking shop.

469
00:27:10,840 --> 00:27:13,120
Speaker 1: Yeah, but it's better to chatchat than to World war,

470
00:27:13,280 --> 00:27:16,760
Speaker 1: as Churchill would have said. And corporation.

471
00:27:17,680 --> 00:27:20,600
Speaker 3: With the caveats, with the difficulties, with the temptation of

472
00:27:20,640 --> 00:27:23,720
Speaker 3: protectionism and all the rest of it. But corporation is

473
00:27:25,080 --> 00:27:29,320
Speaker 3: at the very center of keeping keeping some sanity in

474
00:27:29,359 --> 00:27:29,800
Speaker 3: this world.

475
00:27:29,880 --> 00:27:31,680
Speaker 2: I mean, the world is so complex. If there is

476
00:27:31,720 --> 00:27:34,840
Speaker 2: only one thing that you would like to figure out

477
00:27:34,880 --> 00:27:36,800
Speaker 2: this week, what would it be? One question?

478
00:27:37,359 --> 00:27:37,679
Speaker 1: Peace?

479
00:27:38,160 --> 00:27:40,040
Speaker 3: If you ask me one word, that's the one that

480
00:27:40,080 --> 00:27:43,640
Speaker 3: I would use. Because when I was i'm f managing director,

481
00:27:43,720 --> 00:27:47,760
Speaker 3: I have seen the destruction and the disaster that that

482
00:27:47,880 --> 00:27:50,159
Speaker 3: war can bring about. And I have seen countries that

483
00:27:50,160 --> 00:27:54,560
Speaker 3: have gone through programs that were just graduating from programs,

484
00:27:54,720 --> 00:27:59,000
Speaker 3: falling back into poverty, into into economic.

485
00:28:00,480 --> 00:28:03,680
Speaker 1: Disaster because of war. So yeah, the world as it is.

486
00:28:04,119 --> 00:28:06,600
Speaker 3: If there was one thing that I could achieve because

487
00:28:06,640 --> 00:28:08,320
Speaker 3: I have a magic sticket, would be peace.

488
00:28:09,160 --> 00:28:10,720
Speaker 2: Do economics come into play?

489
00:28:10,760 --> 00:28:10,920
Speaker 3: Though?

490
00:28:10,960 --> 00:28:12,920
Speaker 2: It feels different this time.

491
00:28:13,320 --> 00:28:15,880
Speaker 3: The war that we the wars that we have out there,

492
00:28:15,920 --> 00:28:17,720
Speaker 3: and it's not just Ukraine and the Middle East, that

493
00:28:17,800 --> 00:28:22,359
Speaker 3: many other theaters of operation like Sudan for instance, not

494
00:28:22,480 --> 00:28:27,600
Speaker 3: much talked about. That bring uncertainty and that undermine the

495
00:28:27,600 --> 00:28:30,960
Speaker 3: confidence that people have. We were talking about the European

496
00:28:31,000 --> 00:28:34,679
Speaker 3: consumer being uncertain. I think, you know, the uncertainty is

497
00:28:34,720 --> 00:28:36,200
Speaker 3: fueled by the lack of confidence.

498
00:28:36,400 --> 00:28:38,240
Speaker 1: You know, what will the future be like.

499
00:28:40,280 --> 00:28:44,520
Speaker 3: With those wars on the horizon and the political uncertainty

500
00:28:44,880 --> 00:28:46,720
Speaker 3: about addressing them and resolving them.

501
00:28:47,200 --> 00:28:49,160
Speaker 2: Christine Lager, thank you so much for your time today

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00:28:49,240 --> 00:28:50,920
Speaker 2: and we wish your successful IMF week.

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00:28:50,960 --> 00:28:51,960
Speaker 1: Thank you and to you two