Fed and ECB Seen Diverging in French Snapshot of War Aftermath

A French economic snapshot of the post-war outlook suggests a split between the Federal Reserve and the European Central Bank. According to two French chief economists, the Fed will still need to raise interest rates this year even though recent Thursday data point to weakness in the labor market. By contrast, the ECB is described as being under no rush to tighten and could even be finished already. The implication is that rate-setting expectations may diverge across the Atlantic, with European policy potentially moving more slowly than the U.S. amid differing inflation and labor signals. The article frames this divergence as relevant for how markets interpret the path of monetary tightening after the war-era transition.