Central Bank official Holzmann: If the Fed does not cut interest rates It is difficult for the Central Bank to cut interest rates three or four times this year

Robert Holzmann, a member of the European Central Bank’s Governing Council, said that if high inflation in the United States forces the Fed to delay easing monetary policy this year, the Central Bank’s room for maneuver will be limited. “If we get too far away from the Fed, I’ll find it difficult,” Holzmann said in an interview in Washington, “and if the Fed doesn’t cut rates at all this year, it’s hard for me to imagine us cutting rates three or four times.” Speaking on the sidelines of the coin and World Bank meetings, Holzmann said inflation in the United States is very different from that in the eurozone. “I don’t currently see the threat of major inflation in the eurozone heating up like in the US,” he said. But the Fed’s actions due to high inflation will affect the Central Bank’s decision-making.