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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (33995)	4/27/2008 3:53:40 PM
From: Haim R. Branisteanu	Respond to of 219951

27 Apr 2008 18:43 GMT UPDATE: France's Lagarde: Gap Between Fed,ECB Rates Too Wide (bye bye EUR?) (Updates with more details from interview, background) PARIS -(Dow Jones)- The differential between central bank interest rates in the U.S. and the euro zone is "a little too wide," the French finance minister said Sunday. "We are in a delicate situation today where on the one hand we have a Federal Reserve that has a policy of very low rates, and on the other hand, a European Central Bank that maintains high rates," Finance Minister Christine Lagarde said in a French television interview. She said, however, that euro-zone monetary policy lies within the province of the ECB, adding that the current differential between U.S. and European rates is out of line. The French for some time have been urging the ECB to help take some wind out of the euro, which they say is undermining European competitiveness, and to foster growth at a time when economies are slowing. European monetary authorities, however, see the economic situation in Europe as being different than in the U.S., which is suffering a more pronounced slowdown than Europe and which is in the throes of a deep real estate depression, sparked by a subprime lending crisis. European authorities are more concerned with insurgent inflationary pressures and have resisted calls to cut rates to spur economic growth. In her interview, Lagarde noted that several European countries have cut their growth estimates for this year, due to a confluence of factors that include the strong euro, surging oil prices and the rising cost of basic foods. By A.H. Mooradian, Dow Jones Newswires; +33 1 4017 1740;art.mooradian@dowjones.com.