Which central bank has best strategy, ECB or Fed? - Natixis

Analysts at Natixis explained that they prefer the Federal Reserve’s strategy over that of the ECB.

Key Quotes:

"Faced with the absence of inflation when the economy is close to full employment, the Federal Reserve and the ECB have reacted differently."

"The Federal Reserve has begun normalising its monetary policy, whereas it seems the ECB is waiting for inflation to return before doing so."

"We think that the Federal Reserve is right, that it is right for a central bank to raise it interest rates when the economy is close to full employment even if there is no inflation."

"This is because the increase in interest rates: - Restores some monetary policy leeway; - Prevents financial imbalances; - Runs counter to the “overheating” theory, but this theory does not seem valid."