ECB’s Lagarde: Price Shocks to Last Longer, AI Valuations Very High

Lagarde is tying two usually separate conversations together: a persistent energy-driven inflation impulse and stretched AI equity valuations. For crypto and RWA markets, the notable part is the framing — a central banker publicly flagging AI valuations as very high sits awkwardly alongside the sector's role as a magnet for risk capital that often overlaps with digital-asset exposure. If energy volatility keeps inflation elevated, the room for easing shrinks, which matters for how much liquidity reaches speculative corners. Whether the AI valuation caution is echoed by other central banks is the open question.