Jean-Claude Trichet defends the ECB's rate tightening, saying at Jackson Hole if the bank...

|By:, SA News Editor

Jean-Claude Trichet defends the ECB's rate tightening, saying at Jackson Hole if the bank didn't anchor inflation expectations, long-term interest rates would quickly rise. Trichet also pours scorn on speculation that EU banks are low on liquidity, arguing their eligible collateral is much larger than the amount in use.