Nagel Says ECB Should Be Cautious About Using Crisis Tools

The transcript discusses concerns about the European Central Bank's (ECB) role in fiscal responsibility, particularly regarding the distinction between justified and unjustified financial spreads. It highlights the potential conflict between bond buying and inflation control, as well as the anticipation of a new ECB tool to be announced at the upcoming Governing Council meeting. The transcript also explores differing views within the ECB, with some policymakers expressing concerns about inflation and interest rates.

What is the expected timeline for the unveiling of the new tool mentioned in the text?

How do the views of hawkish policymakers differ regarding the new tool and interest rates?