{"id":55319,"date":"2025-10-30T10:38:34","date_gmt":"2025-10-30T14:38:34","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/ecb-confident-in-monetary-transmission-as-digital-euro-advances-airline-ceos-warn-on-government-shutdown-impact\/55319\/"},"modified":"2025-10-30T10:38:34","modified_gmt":"2025-10-30T14:38:34","slug":"ecb-confident-in-monetary-transmission-as-digital-euro-advances-airline-ceos-warn-on-government-shutdown-impact","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/ecb-confident-in-monetary-transmission-as-digital-euro-advances-airline-ceos-warn-on-government-shutdown-impact\/55319\/","title":{"rendered":"ECB Confident in Monetary Transmission as Digital Euro Advances; Airline CEOs Warn on Government Shutdown Impact"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>European Central Bank (ECB) President Christine Lagarde affirmed that the bank&#39;s monetary policy transmission remains &quot;effective and on time&quot;<\/strong>, indicating no impairment in its mechanisms.<\/li>\n<li><strong>ECB Executive Board member Fabio Panetta suggested that the cost of adopting the digital euro would not be very high<\/strong>, aligning with the project&#39;s goals to foster innovation and competition in payments.<\/li>\n<li><strong>CEOs of major U.S. carriers, American Airlines (<a href=\"\/stock\/AAL\">AAL<\/a>) and United Airlines (<a href=\"\/stock\/UAL\">UAL<\/a>), are slated to attend a White House event to discuss the aviation industry&#39;s concerns regarding the impact of a government shutdown<\/strong>, as reported by Reuters citing sources.<\/li>\n<li><strong>The Eurosystem has moved to the next phase of the digital euro project, with a potential first issuance targeted for 2029<\/strong>, assuming legislative adoption by 2026 and a pilot exercise starting in mid-2027.<\/li>\n<\/ul>\n<p>European Central Bank (ECB) President <strong>Christine Lagarde<\/strong> today expressed confidence in the central bank&#39;s monetary policy, stating that &quot;everything we see in transmission suggests it is effective, and on time&quot;. This assertion underscores the ECB&#39;s view that its policy decisions are being effectively passed through the financial system to the broader economy. Lagarde&#39;s remarks come as the eurozone navigates ongoing economic challenges and strives for price stability.<\/p>\n<p>In a separate development, <strong>ECB<\/strong> Executive Board member <strong>Fabio Panetta<\/strong> indicated that the cost of adopting the <strong>digital euro<\/strong> would not be very high. This perspective supports the <strong>ECB&#39;s<\/strong> broader initiative to introduce a digital version of the euro, aiming to preserve monetary sovereignty, enhance payment innovation, and ensure competitive, resilient, and inclusive payment systems across Europe. The <strong>Eurosystem<\/strong> has officially entered the next phase of the <strong>digital euro<\/strong> project, with technical preparations underway. The <strong>ECB<\/strong> anticipates that if legislation is adopted in 2026, a pilot exercise could commence in mid-2027, leading to a potential first issuance of the <strong>digital euro<\/strong> by 2029.<\/p>\n<p>Meanwhile, the U.S. aviation sector is grappling with the potential fallout from a government shutdown. The CEOs of <strong>American Airlines<\/strong> (<a href=\"\/stock\/AAL\">AAL<\/a>) and <strong>United Airlines<\/strong> (<a href=\"\/stock\/UAL\">UAL<\/a>) are expected to participate in a White House event to discuss the shutdown&#39;s implications for the industry. <strong>United Airlines<\/strong> CEO <strong>Scott Kirby<\/strong> has previously warned that a prolonged shutdown could negatively affect airline bookings and operations due to waning public confidence in the government&#39;s ability to resolve the impasse. The ongoing shutdown has already exacerbated existing staffing shortages among air traffic controllers, leading to occasional air traffic slowdowns in some cities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways European Central Bank (ECB) President Christine Lagarde affirmed that the bank&#39;s monetary policy transmission remains &quot;effective and on 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