4/6/2011

The European Central Bank is coping with increasing commodity prices and a fragile economic recovery. This week, the ECB is scheduled to increase interest rates. It would be the first central bank among developed countries to do so. Meanwhile, the Federal Reserve is facing similar challenges, but it is maintaining easy monetary policy. Short-term interest rates remain close to zero, and the central bank is buying bonds to pump cash into the economy.

Related Summaries