MNI BRIEF: Uncertainty To Persist Despite US-China Talks-Nagel

Uncertainty is the new normal for the world economy and will not dissipate any time soon despite the progress in U.S.-China trade talks, Bundesbank president Joachim Nagel said on Wednesday. 

“We are not in a path that will end up in a fixed point,” Nagel said in an event in Spain alongside Bank of Spain Governor Jose Luis Escriva. The European Central Bank will decide on lowering or holding interest rates in June depending on data, he said, adding that future path of rates is open. (See MNI SOURCES: ECB Heads For June Cut, But Debate To Be Lively)

Commenting on the doubts over the dollar following April’s market turmoil after April 2, he said both the greenback and the dollar need to be reserve currencies.

 “We need a strong dollar,” he said.