ECB's Lagarde to EU officials: Inflation fight is going well

<ul><li>Eurozone economy to stagnate in the next few quarters</li><li>Risks to inflation have become more balanced</li><li>Fiscal impasse is starting to turn into a headache</li></ul><p>The fear for the euro area now is that as the economy skirts around the risk of a recession, a second-round effect of inflation pressures would basically put them in a rather dire spot. Stagflation, anyone? Lagarde is trying to sound optimistic but surely she can't say with unequivocal certainty that the ECB has done enough.</p>

This article was written by Justin Low at www.forexlive.com.