January 14, 2011
ECB President Jean-Claude Trichet scrambled to counter an unexpected rise in euro-zone inflation, signaling that he won't hesitate to raise rates if recent signs of price pressures become firmly entrenched.
In his monthly press conference, Mr. Trichet also appealed to European leaders to move quickly to increase the size and flexibility of a rescue fund aimed at stemming contagion from the currency bloc's widening debt crisis, saying "there is a sense of urgency."
But it was his inflation warning that created the biggest stir in financial markets. Money-market rates rose during Mr. Trichet's press conference, and the euro jumped above $1.33 against the U.S. dollar as investors reassessed their European interest-rate forecasts.
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Read the statement by Trichet
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