Are the Fed and BCE doing enough?

The U.S. Federal Reserve and the European Central Bank — two pillars of global monetary policy — appear to be following divergent paths. The ECB has paused policy action while the Fed has lowered rates without pledging further cuts. Is this divergence transient or indicative of a structural misalignment? Between inflation, labor markets, central-bank balance sheets and the prospect of a government shutdown, policy challenges remain considerable. Bastien Drut, Head of Research and Strategy at CPRAM, provides his analysis.