“Governments with fiscal space should act in an effective and timely manner,” Draghi said, only two days after Germany, the euro zone’s largest economy, signaled it’s targeting another balanced federal budget next year. The euro zone economy is facing an extended slowdown and inflation is likely to stay clearly below the European Central Bank’s medium-term target, Draghi said.

While Fed officials such as Chairman Jerome Powell repeat the mantra that the economy is in “a good place,” the risks to the outlook stemming from slower global growth and trade wars remain sufficient to justify rate cuts. As Powell explained again last week, the Fed believes that its dovish pivot toward a lower path for policy rates help explains the economy’s resilience in the face of that uncertainty.

“As things change — also this forward guidance and the policy may change — not tomorrow, not the day after tomorrow, but I wouldn’t think it’s there for the next decades,” Robert Holzmann said in an interview with Bloomberg on Friday in Helsinki. Lagarde is not “a weak person who’ll say I’m locked in one or the other way.”

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