Isabel Schnabel is in talks to become head of the International Monetary Fund’s Monetary and Capital Markets Department and may leave the European Central Bank before her term ends in 2027, Handelsblatt reported, citing government sources. The ECB and IMF have both declined to comment. Schnabel, an outspoken policy hawk and head of the ECB’s market operations, joined the Executive Board on January 1, 2020, and oversees the central bank’s asset purchase and reinvestment policies. Her possible departure comes as euro-area inflation remains around 2.9%, above the ECB’s 2% target, and would bring forward a succession process involving Chief Economist Philip Lane and President Christine Lagarde. It would also effectively end speculation about Schnabel becoming the ECB’s next president. Germany, France and Spain are positioning for seats in the reshuffle, while a possible package deal among EU governments could determine several appointments. Schnabel has also argued that central banks should incorporate blockchain technology into their operations.