ECB's Constancio on the Impact of Higher U.S. Rates

The video discusses the current low level of systemic risk in the euro area, highlighting the financial cycle's position and potential risks such as a reversal of risk premium in financial markets. It examines the impact of US interest rate hikes and emerging market vulnerabilities on the euro area. The discussion also covers the indirect effects of Fed policies on price stability and the euro's exchange rate. Geopolitical risks, including terrorism and border tensions, are considered significant threats. Finally, the video outlines the factors influencing decisions on quantitative easing, emphasizing the importance of medium-term economic projections.

What is the current level of systemic risk in the euro area according to the text?

What are the main risks mentioned that could affect financial institutions?

How does the text describe the potential impact of a Fed rate hike on global stability?

What indirect effects could the Fed's actions have on the euro area?

How does the speaker view the relationship between the Fed's actions and the euro area's price stability?

What geopolitical risks are highlighted in the text, particularly concerning Europe?

What factors does the speaker consider important for making decisions about quantitative easing?