ECB's Weidmann: Europe's extraordinary fiscal and monetary support must be temporary

Europe's extraordinary fiscal and monetary support must be temporary and needs to be scaled back after COVID-19, Jens Weidmann, European Central Bank (ECB) Governing Council member and Bundesbank President argued on Wednesday.

"After the crisis, however, the emergency monetary policy measures would have to be scaled back again," Weidmann said while acknowledging that extraordinary measures were necessary to fight the coronavirus crisis, as reported by Reuters. "Fiscal policy should also not get used to an easy course, nor should it rely on interest rates to remain so low over the long term."

Market reaction

The EUR/USD pair paid little to no attention to these comments and was last seen losing 0.6% on the day at 1.1840.