New Bundesbank president takes charge with warning on inflation risks

While Nagel acknowledged that temporary factors are partly to blame for current pressures, he also called the medium-term outlook 'exceptionally uncertain'

New Bundesbank President Joachim Nagel warned in his first speech on the job that inflation may remain elevated for longer than currently expected, urging his colleagues at the European Central Bank to be vigilant.In vowing to follow in his predecessor’s footsteps, Nagel is setting himself up to become one of the ECB’s most conservative officials.

Jens Weidmann was often a thorn in the side of his colleagues during his 11-year tenure with his strict views on policy.“For confidence, it’s particularly important that monetary policy focuses on the goal of price stability,” Nagel said Tuesday.

“Central banks should therefore