ECB’s Knot says Fed is closer to end of rate hikes than ECB

The European Central Bank (ECB) has a longer way to go in raising interest rates than the Federal Reserve, but ultimately won't raise its rates to the same level as its U.S. counterpart, ECB governing council member Klaas Knot said on Friday.

"The U.S. is closer to the end point in terms of raising interest rates than we are, but we have more rate hikes to go. So part of the difference will disappear. My prediction is we won't close the gap entirely because the problem is deeper rooted in the U.S. than in Europe, as the American economy and job markets are really overheating," Knot said in a meeting with students in Amsterdam.