Ivan Sramko to Join European Central Bank and How this Impacts US

Ivan Sramko to Join European Central Bank and How this Impacts US

When Slovakia becomes the newest entrant into the Euro-zone, Ivan Sramko, the countries central banker will join the ECB. Mr Sramko is an inflation hawk and will add his voice to a policy that already favors raising rates. How will this impact the US? Read on.

When Slovakia becomes the newest entrant into the Euro-zone, Ivan Sramko, the countries central banker will join the ECB.  Mr Sramko is an inflation hawk and will add his voice to a policy that already favors raising rates. 

The European Central Bank has already shown a bias towards fighting inflation by raising rates a quarter of a point last week and the addition of another hawkish member will only solidify that stance.

As Europe raises rates, it puts more pressure on the US dollar, which in turn helps fuel inflation.  This puts additional pressure on the US to either keep steady or raise US interests rates. 

While the ECB is raising rates, the UK appears to be at risk of falling into a recession according to the BBC.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

Your code to embed this article on your website* :

*You are allowed to change only styles on the code of this iframe.

 

Comments

Add your Comment