Incoming ECB President Christine Lagarde talked about the challenges to the global economy in the CBS News “60 Minutes” program. She warned that US President Donald Trump has “many keys” that would “unlock the uncertainty of the risks”. The biggest key was in relation to “predictability and, and certainty of the terms of trade”. Also, she emphasized “market stability should not be the subject of a tweet here or a tweet there. It requires consideration, thinking, quiet and measured and rational decisions.”

Europe is facing increasing fears of recession, as led by slump in manufacturing. And the room for more monetary stimulus by ECB is very limited, given that rates are already negative. Lagarde said “there’s a limit to what central bankers can do. There’s a limit to how far and how deep you go into negative territory.” However, she added, “There’s a bottom to everything, but we’re not at that bottom at this point in time.” The interview was done in September though.

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