Lee Says Draghi Credibility Allows ECB Leeway

The transcript discusses the reliance on soft data and political risks in economic policy, particularly focusing on the European Central Bank (ECB) and the Federal Reserve (Fed). It highlights the ECB's potential withdrawal of stimulus and the importance of core inflation rates. The discussion emphasizes the need for hard data over sentiment in policy-making, noting the challenges faced by the Fed in aligning sentiment with actual data. The ECB's policy outlook is also explored, with a focus on Draghi's credibility in managing economic expectations.

What factors are influencing the ECB's decision-making regarding stimulus withdrawal?

What is the significance of the core inflation rate in the context of ECB policy?

How does the reliance on soft data versus hard data impact economic forecasts?

What challenges does the Fed face in its analysis of economic data?

In what ways is the ECB's credibility affecting its policy decisions?